Apple Fined $2 Billion by EU for Market Abuse in Music Streaming App Sector
Bollywoodfever, March 4: The European Commission, an integral arm of the European Union (EU), has levied a €1.8 billion ($1.95 billion) fine against Apple for exploiting its dominant market position in the distribution of music streaming applications.
EU Competition Commissioner Margrethe Vestager highlighted in a statement on Monday regarding the antitrust verdict that Apple had limited app developers’ capacity to inform Apple device users about alternative, more affordable music purchasing options available online outside the Apple ecosystem.
Vestager criticized the practice, stating, “This is illegal. It has deprived millions of European consumers of the freedom to choose where, how, and at what cost to purchase music streaming subscriptions.”
The penalty includes a “lump sum” intended to compensate for the non-monetary damage inflicted on consumers and to serve as a deterrent, the EU explained. Vestager remarked, “Today’s fine takes into account Apple’s financial strength and the extent of the damage its actions have caused to millions of European users.”
She emphasized the significance of competition law in the EU’s Digital Single Market, noting the Digital Markets Act (DMA) now provides increased choice and freedom to both consumers and business users of “gatekeeper” services like Apple’s.
Vestager pointed out that by March 7, 2024, Apple must adhere to a comprehensive set of DMA regulations, including the elimination of restrictions such as the anti-steering rules central to this case, applicable across the App Store and not limited to music streaming apps alone.
Addressing Apple’s recent adjustments to its App Store business model, Vestager expressed her inability to comment in detail but assured a thorough review and consideration of market feedback.
Vestager concluded, asserting that Apple must facilitate greater openness within its ecosystem, allowing users to easily discover, pay for, and use apps across any device, enhancing user autonomy and choice.
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