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EU fines Apple €1.84B for App Store antitrust violations

EU fines Apple €1.84B for App Store antitrust violations
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TL;DR

  • The EU fined Apple €1.84 billion for restricting competition in the music streaming market through its App Store policies.
  • This penalty, stemming from a 2019 complaint by Spotify, marks Apple’s first fine for violating EU rules.
  • Apple intends to appeal the decision, which led to a 3.2% drop in its stock price following the announcement.

The European Union has imposed a €1.84 billion ($2 billion) fine on Apple (NASDAQ: AAPL)   for limiting competition in the music streaming market through its App Store policies. This marks the first instance where Apple has been penalized for contravening EU rules. The fine is a response to practices that prevented rivals, notably Spotify, from directing users to alternative payment methods outside of the App Store.

This decision by the European Commission follows a complaint lodged by Spotify in 2019, accusing Apple of anti-competitive behavior. The Commission’s investigation concluded that Apple’s actions created unfair trading conditions by restricting developers from informing users about cheaper subscription options available outside its ecosystem.

Margarethe Vestager, the European Competition Commissioner, detailed that the fine includes a basic component of €40 million, referred to as a “parking ticket” for Apple, with an additional €1.8 billion aimed at deterring similar conduct in the future. This total penalty corresponds to 0.5% of Apple’s global turnover, highlighting the scale of the EU’s action against the tech giant.

Apple’s responds

Apple has announced its intention to appeal the ruling, which will be reviewed by the Luxembourg-based General Court, Europe’s second-highest court. The appeal process is expected to extend over several years. In the meantime, Apple’s stock experienced a 3.2% decline to $173.88 following the announcement of the fine.

The EU’s move is part of a broader effort to regulate the market power of large technology firms and ensure competitive fairness. This penalty against Apple ranks as the third-largest antitrust fine issued by the EU, highlighting the significant regulatory focus on the practices of major tech companies.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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