The Commission also alleged that the American technology company imposed restrictions on app developers that hindered them from informing iOS users about alternative and cheaper music subscription services available outside of the app
Apple fined more than €1.8bn by the EC for violating music streaming rules. (Credit: Phillip Pessar/Wikimedia Commons)
The European Commission (EC) has imposed a fine of more than €1.8bn on Apple for its alleged anti-competitive practices in connection with music streaming apps on its App store.
According to the EC, the American technology company is exploiting its dominant position in the industry for the distribution of music streaming apps to iPhone and iPad users through the App Store.
The Commission also alleged that Apple imposed restrictions on app developers that hindered them from informing iOS users about alternative and cheaper music subscription services available outside of the app (anti-steering provisions).
Apple’s anti-steering provisions, which lasted for almost 10 years, led to unfair trading conditions, violating Article 102(a) of the Treaty on the Functioning of the European Union (TFEU), said the EC.
Besides, the antitrust authority has mandated Apple to remove the anti-steering provisions and to desist from committing similar infringement or from adopting practices with an equivalent object or effect in the future.
EC executive vice-president in charge of competition policy Margrethe Vestager said: “For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store.
“They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem. This is illegal under EU antitrust rules, so today we have fined Apple over €1.8 billion.”
In a separate statement, Apple said that the company would appeal the EC’s decision. The technology company said that the Commission has failed to bring forth any credible evidence of consumer harm.
Apple stated: “The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm and ignores the realities of a market that is thriving, competitive, and growing fast.”