Apple Fined Nearly $2 Billion In Spotify Case: Here Is Why
The European Commission (EU) has imposed a fine of €1.84 billion ($2 billion) on Apple, marking the tech giant’s first-ever EU antitrust penalty.
The decision is the result of a 2019 complaint from Spotify, the Swedish music streaming service, over Apple’s restrictions on informing users about payment options outside the App Store and the 30 percent commission fee charged for in-app purchases, Reuters reported.
In a relatively new approach, the EU regulator argued that Apple’s restrictions have unfair trading conditions. This argument was also used by the Dutch antitrust agency in a 2021 decision against Apple in a case brought by dating app providers.
The €1.84 billion fine is less than the expected €500 million penalty and comprised a basic element of €40 million, described by EU Competition Commissioner Margarethe Vestager as a “parking ticket” for Apple, plus an additional €1.8 billion as a deterrent, the report added. The total fine equals 0.5 percent of Apple’s global turnover.
The European Commission has ordered Apple to remove the anti-steering provisions and refrain from similar practices in the future. This order echoes the requirements under the new EU Digital Markets Act (DMA), which Apple must comply with by March 7.
