Apple fined nearly $2 billion

On March 4th, the European Union Commission announced a $1.95 billion fine against Apple for abusing its dominant position in the online music streaming app market.

Investigators say Apple imposed numerous restrictions on app developers, preventing competitors from informing iOS users about cheaper alternative music subscription services outside the App Store.

The commission also accused Apple of prohibiting developers of music streaming apps from providing any instructions that users could refer to in order to sign up for cheaper deals.

The European Union Commission fined Apple $1.95 billion to combat the company's monopolistic practices.

This is the first antitrust fine from the EU against Apple and one of the largest fines the commission has ever imposed on a technology company.

Immediately after the news, Apple shares fell by about 2.5% in morning trading in the US.

The European Commission launched an investigation into Apple following a complaint from Spotify in 2019. According to the commission, Apple's behavior had been ongoing for nearly 10 years and may have led many regular iOS users to pay higher prices for features and streaming packages similar to those offered by third-party apps.

In theory, service fees could be cheaper if using external payment gateways, because developers wouldn't have to pay a 15-30% commission if they used the App Store's service.

Apple and Spotify's response

Immediately following the commission's sanction decision, Apple stated that Spotify would benefit most from the EU's declaration.

"The main supporter of this decision, and the company that benefits the most, is Spotify. Currently, Spotify holds 56% of the streaming music market in Europe, more than double that of its closest competitor. However, this company is not paying Apple – a factor that has contributed to its success," Apple said in a statement.

The European Commission launched an investigation into Apple following a complaint from Spotify in 2019.

Apple emphasizes that much of Spotify's success is due to the App Store, along with all the tools and technologies Spotify uses to build, update, and share its app with Apple users worldwide .

Instead of selling subscription packages within the iOS app, Spotify sells them through its own website. Apple does not take a commission on those purchases.

Nevertheless, developers have for years protested against the 30% fee Apple charges for in-app purchases.

Spotify immediately expressed its support for the EU's fair decision.

"Apple's rules have prevented Spotify and other streaming music services from sharing various benefits with users. They also prevent us from promoting upgrade packages, promotions, discounts, or other special offers," Spotify added.

EU tightens controls on tech companies.

In a press conference, the head of the EU's antitrust agency, Margrethe Vestager, assessed the fine against Apple as quite small, comparing it to a "speeding ticket or a parking ticket" given the company's size.

"Apple, with its App Store, currently holds a monopoly. Developers have no choice but to accept or reject the App Store," Vestager said, adding that the committee has asked Apple to remove the so-called monopoly regulation and avoid similar practices in the future.

Analysts believe this sanctioning decision will increase tensions between Big Tech companies and the commission amid heightened EU scrutiny of these companies.

Previously, the EU had also fined Google, a subsidiary of Alphabet, a total of 8.25 billion euros in connection with various lawsuits.

Currently, Apple is also facing another antitrust investigation by the EU, in which the American company is proposing to resolve the issue by opening its tap-and-go mobile payment system to competitors.

Furthermore, Apple and other major tech companies are also facing significant pressure from the antitrust law that is set to take full effect on March 7th. The Digital Markets Act (DMA) requires tech companies to allow third-party app stores, facilitate users switching to competing platforms, and prohibits the combination of personal data across multiple services.

To comply with this regulation, Apple adjusted the fees for developers in the EU, allowing users to install third-party app stores on their iPhones.

Thanh Thang

Source: https://www.baogiaothong.vn/apple-bi-phat-gan-2-ty-usd-19224030506314747.htm