Apple is facing a massive $2 billion penalty from European Union regulators over allegations that it violated antitrust laws by stifling competition in the music streaming market.
In a landmark ruling on Monday, the European Commission hit Apple with a fine of 1.84 billion euros ($2 billion) – the largest antitrust penalty the tech giant has ever received from EU authorities. Regulators accused Apple of using restrictive rules on its App Store to thwart rival music services like Spotify from being able to effectively compete with Apple Music.
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EU Hits Apple with $2 Billion Fine Over Music Streaming Antitrust Claims
The unprecedented fine amount included not just a basic 40 million euro penalty, but an additional 1.8 billion euro “deterrent” sum aimed at discouraging further anti-competitive behavior from a company of Apple’s massive size and resources.
According to the Commission, Apple’s App Store policies preventing music apps from telling users about cheaper payment options outside the app constituted unfair trading practices in violation of EU competition law. It ordered Apple to end these restrictions.
Apple vowed to appeal the ruling, setting up a lengthy legal battle likely to take several years to resolve in European courts. In the meantime, it must pay the 2 billion euro fine and change its App Store policies to comply with the EU order.
The penalty represents a major escalation in the global backlash tech giants like Apple have faced over potentially anti-competitive business practices. EU antitrust chief Margrethe Vestager called the “deterrent” element of the fine unprecedented but necessary given Apple’s global revenues.
For its part, Apple fiercely contested the ruling, claiming no evidence of consumer harm and arguing the decision primarily benefits its biggest critic – music streaming rival Spotify. The battle lines are now drawn for a high-stakes legal showdown over the business models of app marketplaces.
