World

Apple Fined Nearly USD 2 Billion By The European Union Over Music Streaming Competition

The European Union levelled its first antitrust penalty against Apple on Tuesday, fining the US tech giant nearly USD 2 billion for breaking the bloc’s competition laws by unfairly favouring its own music streaming service over rivals.

Apple banned app developers from “fully informing iOS users about alternative and cheaper music subscription services outside of the app”, said the European Commission, the 27-nation bloc’s executive arm and top antitrust enforcer.

“This is illegal, and it has impacted millions of European consumers,” Margrethe Vestager, the EU’s competition commissioner, said at a news conference.

Apple behaved this way for almost a decade, which meant many users paid “significantly higher prices for music streaming subscriptions”, the commission said.

The 1.8 billion-euro fine follows a long-running investigation triggered by a complaint from Swedish streaming service Spotify five years ago.

The EU has led global efforts to crack down on Big Tech companies, including a series of multbillion-dollar fines for Google and charging Meta with distorting the online classified ad market. The commission also has opened a separate antitrust investigation into Apple’s mobile payments service.

Apple hit back at both the commission and Spotify, saying it would appeal the penalty.

“The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast,” the company said in a statement.

It said Spotify stood to benefit from the decision, asserting that the Swedish streaming service that holds a 56 per cent share of Europe’s music streaming market and doesn’t pay Apple for using its App Store met 65 times with the commission over eight years.

“Ironically, in the name of competition, today’s decision just cements the dominant position of a successful European company that is the digital music market’s runaway leader,” Apple said.

The commission’s investigation initially centred on two concerns. One was the iPhone maker’s practice of forcing app developers that are selling digital content to use its in-house payment system, which charges a 30 per cent commission on all subscriptions.

But the EU later dropped that to focus on how Apple prevents app makers from telling their users about cheaper ways to pay for subscriptions that don’t involve going through an app.

The investigation found that Apple banned streaming services from telling users about how much subscription offers cost outside of their apps, including links in their apps to pay for alternative subscriptions or even emailing users to tell them about different pricing options.

The fine comes the same week that new EU rules are set to kick in that are aimed at preventing tech companies from dominating digital markets.

The Digital Markets Act, due to take effect on Thursday, imposes a set of do’s and don’ts on “gatekeeper” companies including Apple, Meta, Google parent Alphabet, and TikTok parent ByteDance — under threat of hefty fines.

The DMA’s provisions are designed to prevent tech giants from the sort of behaviour that’s at the heart of the Apple investigation. Apple has already revealed how it will comply, including allowing iPhone users in Europe to use app stores other than its own and enabling developers to offer alternative payment systems.

The commission also has opened a separate antitrust investigation into Apple’s mobile payments service, and the company has promised to open up its tap-and-go mobile payment system to rivals in order to resolve it.

PTI

Also Read: Delhi Government Allocates Rs 16,396 Crore For Education In Budget 2024

Bharat Express English

Recent Posts

RG Kar Case: Junior Doctors In West Bengal Protest Alleged Gaps In CBI Chargesheet

Junior doctors in WB protested Tuesday over alleged flaws in the CBI chargesheet on their…

7 mins ago

Supreme Court Upholds Uttar Pradesh Madrasa Education Act; Sets Limits On Higher Education Regulation

The SC upheld the UP Board of Madrasa Education Act, 2004, reversing the Allahabad High…

29 mins ago

How US Presidential Election Is Conducted – Explained

The US presidential election is a complex, multi-step process that involves both voters and an…

55 mins ago

Mumbai Police Uncover Connections & Weapons In Baba Siddiqui Murder Investigation

The Mumbai Police disclosed that the firearms used to assassinate late NCP leader Baba Siddiqui…

2 hours ago

Mumbai Police Investigate New Death Threat Against Salman Khan Linked To Gangster Lawrence Bishnoi

Mumbai Police is investigating a threatening message directed at actor Salman Khan, allegedly originating from…

2 hours ago

Uttar Pradesh Government To Tighten Control Over DGP Appointment Before By-Elections

Ahead of the by-elections, CM Yogi Adityanath's government in Uttar Pradesh will take greater control…

3 hours ago