European Union regulators have hit tech giant Apple with a hefty 1.8 billion euro ($1.95 billion) fine for stifling competition among music streaming rivals. The penalty comes after a five-year investigation initiated by Spotify, one of Apple’s biggest competitors.
The E.U. antitrust regulator found that Apple had abused its dominant position in the market by using its App Store to block out competitors. This ruling requires Apple to allow music streaming developers to communicate freely with their users moving forward.
Apple, however, has stated that it will appeal the decision, arguing that the facts do not support the ruling. The company maintains that Spotify has been able to add millions of subscribers outside of its app over the years.
This fine is the latest in a series of regulatory actions taken against Apple, with many disputes arising from the company’s requirement that apps use its in-app payment service and pay a commission of up to 30 percent on transactions. Regulators in the Netherlands and South Korea have already taken steps to force Apple to allow alternative payment services.
The European Union’s aggressive stance on tech regulation is further reinforced by this ruling, as the bloc continues to pass laws and penalties targeting major tech companies like Google, Amazon, Microsoft, and Meta. Apple’s compliance with the new Digital Markets Act, which requires it to open the iPhone to competing app stores and allow alternative payments, will be closely monitored.
Developers, including Spotify, have criticized Apple’s proposed plan for the App Store in Europe, arguing that it does not fully comply with the law. The ongoing battle between Apple and its competitors highlights the complex dynamics of the tech industry and the challenges of maintaining fair competition in the digital marketplace.
