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This is the EU’s third-largest fine ever, and its first targeting Apple.
Apple has been hit with a record-breaking fine of €1.8 billion ($1.95 billion) by the European Commission for restricting alternative music streaming apps on the App Store. This is the EU’s first fine for Apple and its third-largest ever announced. The fine comes after an investigation was launched in 2020 following a complaint filed by Spotify, alleging that Apple was suppressing the music service to gain a competitive advantage for iTunes and Apple Music.
The European Commission found that Apple banned app developers from providing information about alternative and cheaper music subscription services available outside of the app. This practice, known as anti-steering, is illegal under EU antitrust laws. Apple also prevented developers from including links to alternative subscription purchasing pages on their websites or in emails. These actions have been ongoing for nearly 10 years and have potentially led iOS users to pay more for music streaming subscriptions due to fees imposed by Apple.
The fine of €1.8 billion is significantly higher than the previously rumored fine of €500 million. The European Commission set the fine at this amount to serve as a deterrent and prevent Apple from repeating its actions. However, Apple plans to appeal the decision.