The ruling came in response to a complaint filed by Spotify in 2019, highlighting Apple's restrictions on informing users about alternative payment options outside of its App Store.
Apple faces a hefty fine from the European Union for its actions on the App Store. The EU imposed a fine of over 1.8 billion euros ($1.95 billion), marking the tech giant's first antitrust penalty. The ruling came in response to a complaint filed by Spotify in 2019, highlighting Apple's restrictions on informing users about alternative payment options outside of its App Store.
The European Commission found Apple guilty of unfair trading conditions, emphasising the harm caused by its practices.
Margrethe Vestager, the EU's antitrust chief, condemned Apple's decade-long abuse of its dominant position in the music streaming app market, reported Reuters.
Apple, however, has contested the ruling, vowing to challenge it in court. The company argues that the decision overlooks the competitive nature of the market and lacks evidence of consumer harm.
It pointed out Spotify's significant role in advocating for the decision, as the Swedish company stands to benefit from the ruling. Spotify, unlike many other developers, avoids Apple's commission by selling subscriptions directly through its website.
The EU's order to lift App Store restrictions aligns with upcoming regulations under the Digital Markets Act, which Apple must comply with by March 7. Despite the substantial fine, it represents only a fraction of the penalties imposed on other tech giants like Google in previous cases.
In a separate antitrust investigation, Apple seeks to resolve matters by offering concessions on its mobile payment systems, a move likely to be accepted by EU regulators.
Apple's clash with the EU underscores ongoing tensions between tech giants and regulators over market dominance and fair competition. As the digital landscape evolves, such rulings could shape the future of app distribution and competition in the tech industry.
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