Apple Hit With $2B EU Fine for “Abusing Dominant Position” in Market for Music Streaming Apps

Georg Szalai
·3 min read

The European Commission, the main executive body of the European Union (EU), has fined Apple 1.8 billion euro ($1.95 billion) for “abusing its dominant position on the market for the distribution of music streaming apps.” The decision came in an antitrust case that was the result of a complaint filed by music streaming giant Spotify.

In a Monday statement about the antitrust decision, EU competition commissioner Margrethe Vestager said: “Apple did so by restricting app developers’ ability to inform users of Apple devices about alternative, cheaper options to purchase music available on the Internet outside of the Apple ecosystem.”

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She added: “This is illegal. And it has impacted millions of European consumers, who were not able to make a free choice as to where, how, and at what price to buy music streaming subscriptions.”

The fine includes an additional “lump sum” to “account for the non-monetary harm caused to consumers and to achieve deterrence,” the EU said. Explained Vestager: “The fine we impose today reflects both Apple’s financial power and the harm Apple’s conduct inflicted on millions of European users.”

Apple said it plans to appeal the decision, arguing that it was reached “despite the Commission’s failure to uncover any credible evidence of consumer harm.”

Spotify said: “This decision sends a powerful message — no company, not even a monopoly like Apple, can wield power abusively to control how other companies interact with their customers. Apple’s rules muzzled Spotify and other music streaming services from sharing with our users directly in our app about various benefits — denying us the ability to communicate with them about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks. Of course, Apple Music, a competitor to these apps, is not barred from the same behavior.”

But it added: “While we are pleased that this case delivers some justice, it does not solve Apple’s bad behavior towards developers beyond music streaming in other markets around the world. Our work will not be done until we succeed in securing a truly fair digital marketplace everywhere and our commitment to helping to make this a reality remains unwavering.”

Meanwhile, Vestager on Monday argued that the Apple case shows that competition law has a central role to play in the EU’s Digital Single Market. “The Digital Markets Act — the DMA — is now also offering more choice, more freedom to both end users and business users of companies, such as Apple, whose services were designated by the Commission as ‘gatekeepers,'” Vestager concluded. “And, in a couple of days, on March 7, 2024, Apple will have to comply with the full list of ‘dos’ and ‘don’ts’ under the DMA. Among others, Apple can no longer impose rules, such as the anti-steering obligations, which were at the core of our investigation in this case. And this holds for any app on the App Store, not just music streaming apps.”

The EU commissioner also addressed recent Apple moves to change its App Store business model. “At this stage, I cannot really comment on them in detail, but let me stress that we will carefully look into the details, to assess the changes and to take into account also the market feedback,” she said.

But Vestager conclduded: “Apple will have to open the gates to its ecosystem, to allow end users to easily find the apps they want, pay for them in any way they want, and use them on any device they want.”

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