The European Commission has
fined Apple 1.8 billion euros ($2 billion) for unfair competitive practices
involving its music streaming service, Apple Music, following a complaint by
Spotify.
Apple device users in the
European Union “were not able to make a free choice as to where, how and at
what prices to buy music streaming subscriptions,” EU competition chief
Margarethe Vestager said at a news conference.
The fine relates to Apple’s
practice of charging companies a 30 per cent fee for sales made through apps
running on Apple’s iOS operating system for iPhones and iPads.
Companies that wanted to avoid
the fee and in turn offer lower prices had to handle sales outside the app.
But Apple also forbade them
from using the iOS app to inform users about prices or to provide a link to a
sign-up page, the commission said.
“For example, Spotify sells
subscriptions through its website, but not through the Spotify app for devices
running Apple’s iOS operating system.
“Users can sign up to Apple’s
own music streaming service, Apple Music, through the “Music” app that comes
with iOS.
“The commission found that
Apple applied restrictions on app developers preventing them from informing iOS
users about alternative and cheaper music subscription services available
outside of the app. This is illegal under EU antitrust rules.”
“From now on Apple would have
to allow music streaming developers to communicate freely with their own
users,” including within iOS apps,” the EU competition chief said.
Leave Comments