The European Commission has ordered Apple to pay 1.8 billion euros (more than $2.6 billion CAD) in an antitrust fine.
The move stems from a 2020 investigation following complaints from Spotify. The music streamer said Apple was suppressing its services because it was competing with iTunes and Apple Music.
In its investigation, the Commission concluded that Apple was partaking in anti-steering practices. This included Apple banning app developers from informing iOS users about cheaper music alternatives outside the Apple ecosystem and how to access these subscriptions.
Anti-steering is illegal under the EU’s antitrust laws.
Apple has partaken in such practices for the past 10 years, possibly leading iOS users to pay higher prices for subscriptions because of the fees it imposes. The Commission also found the practices led to a “degraded” experience for users.
“These anti-steering provisions are neither necessary nor proportionate for the protection of Apple’s commercial interests in relation to the App Store on Apple’s smart mobile devices and negatively affect the interests of iOS users, who cannot make informed and effective decisions on where and how to purchase music streaming subscriptions for use on their device,” the Commission said in a press release.
The 1.8 billion euro penalty is much higher than rumours that estimated the fine to be 500 million euros. The Commission said the fine must be ” sufficiently deterrent” to ensure Apple doesn’t repeat the practice.
In a press release, Apple took aim at Spotify, stating the platform doesn’t pay the company’s App Store anything despite helping it reach success.
“That’s because Spotify — like many developers on the App Store — made a choice. Instead of selling subscriptions in their app, they sell them on their website. And Apple doesn’t collect a commission on those purchases.”
Apple will appeal the Commission’s decision.
Image credit: Shutterstock
Source: European Commission, Apple
