- The European Commission considers that the company has abused its hegemony by preventing competitors such as Spotify from reporting or applying cheaper subscription option surcharges outside the Apple Store's "ecosystem".
The European Commission has imposed a fine of EUR 1.8 billion on Apple for abusing its leadership in the streaming music market. Brussels condemns the company for the restriction on informing developers about the cheapest options to buy "music outside the Apple ecosystem". "This is illegal," says Margrethe Vestager at a press conference of the European Commission Competition Commissioner. A policy that has had a negative impact on millions of online music consumers via devices like iPhone or iPad.
According to the Commissioner, the fine amounts to 0.5% of the company’s total turnover. However, the penalty is much lower because anti-unfair competition law allows fines of up to 10% of turnover.
“The Commission has concluded that the total amount of the fine of over EUR 1.8 billion is proportional to Apple’s overall revenue and necessary to achieve the deterrent effect,” they note.