The EU has imposed a fine of nearly 2 billion euros on Apple due to the Spotify case

The European Commission’s decision was initiated by a complaint from Spotify in 2019 regarding this restriction and Apple’s 30 percent App Store fees, as reported by Reuters.

The European Union’s competition enforcement agency stated that Apple’s restrictions represent unfair trading conditions, which is a relatively new argument in the case against market competition, and was also used by the Dutch competition authority in its decision against Apple in 2021 in a case brought by dating app providers.

The regulator added in a statement that the fine is high because a significant portion of the damage caused by Apple’s behavior was non-monetary, ultimately resulting in an estimated amount of 1.84 billion euros, or 0.5 percent of the company’s total revenue.

The EU’s antitrust chief Margrethe Vestager stated that this is the first time the Commission has added a flat amount to an antitrust fine.

– For a whole decade, Apple has abused its dominant position in the market for distributing music streaming apps through the App Store. They did this by prohibiting developers from informing consumers about alternative, cheaper music services available outside Apple’s ecosystem. This is illegal under EU antitrust rules – said Vestager, who ordered Apple to refrain from similar practices in the future.

As expected, Apple criticized the EU’s decision, stating that it would contest it in court. A ruling from the General Court based in Luxembourg, the second highest in Europe, is likely to take several years. Until then, Apple will have to pay the fine and comply with the EU’s order.

– The decision was made despite the Commission’s failure to uncover credible evidence of consumer harm and ignores the reality of a market that is advancing, competitive, and rapidly growing… The main advocate of this decision – and the biggest winner – is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world and has met with the European Commission more than 65 times during this investigation – Apple stated.

They added that Spotify does not pay them any commission because it sells its subscriptions on its website, not on the App Store.

The latest order to Apple to remove App Store restrictions reflects the same requirement under the new EU technical rules known as the Digital Markets Act (DMA), which Apple must comply with by March 7.

However, Apple’s fine is about a quarter of the 8.25 billion euros in fines we reported on, which the EU regulator imposed on Alphabet’s Google in three cases over the past decade.

Unlike the music streaming case, Apple is seeking to resolve another EU antitrust investigation by offering to open its tap-and-go mobile payment systems to competitors.

EU regulators, who subsequently sought feedback from rivals and users, are likely to accept its offer without a monetary penalty for the company.