Apple fined nearly $2 billion

On March 4, the European Union Commission announced a fine of $1.95 billion to Apple for abusing its dominant position in the music streaming app distribution market.

The investigation agency said Apple imposed numerous restrictions on app developers, preventing competitors from informing iOS users about cheaper alternative music subscription services outside the App Store.

The commission also accused Apple of prohibiting music streaming app developers from providing any guidance that users could refer to in order to sign up for cheaper offers.

The European Union Commission fined Apple $1.95 billion to combat the company's monopolistic practices.

This is the first antitrust fine from the EU against Apple and one of the largest the commission has imposed on a technology company.

Apple shares fell about 2.5% in morning trading in the US immediately following the news.

The European Commission opened an investigation into Apple following a complaint from Spotify in 2019. According to the commission, Apple's practices spanned nearly 10 years and may have forced many regular iOS users to pay higher prices for similar streaming features and packages as third-party apps.

Theoretically, service fees can be cheaper if using an external payment gateway, because developers do not have to pay a 15 - 30% commission if using the App Store service.

Apple and Spotify respond

Immediately after the commission's fine decision, Apple said Spotify would benefit the most from the EU's ruling.

"The main supporter of this decision and the company that will benefit the most is Spotify. Spotify currently has 56% of the music streaming market share in Europe, more than double that of its nearest competitor. However, this company does not pay Apple the money that makes it so successful today," Apple said in a statement.

The European Commission opened an investigation into Apple following a complaint from Spotify in 2019.

Apple attributes much of Spotify's success to the App Store, along with all the tools and technologies Spotify uses to build, update, and share its apps with Apple users around the world.

Instead of selling subscriptions within the iOS app, Spotify sells them through its own website. Apple doesn't take a cut of those purchases.

Still, developers have spoken out for years against the 30% fee Apple charges on in-app purchases.

Spotify immediately expressed its support for the EU's fair decision.

"Apple's rules prevent Spotify and other streaming music services from sharing various benefits with users. They also prevent us from promoting upgrades, promotions, discounts, or other perks," Spotify added.

EU "tightens" technology corporations

In a press conference, EU antitrust chief Margrethe Vestager described the fine against Apple as relatively small, comparing it to a “speeding ticket or a parking ticket” given the size of the company.

“Apple with the App Store is still a monopoly. Developers have no choice but to accept or leave the App Store,” Vestager said, adding that the commission had asked Apple to remove the so-called monopoly and avoid similar practices in the future.

Analysts say the decision to impose the fine will increase tensions between Big Tech and the commission as the EU increases scrutiny of these companies.

Previously, the EU also fined Google, a subsidiary of Alphabet, a total of 8.25 billion euros in connection with many lawsuits.

Apple is also currently facing another EU antitrust investigation, which the US company has proposed to resolve by opening up its tap-and-go mobile payments system to rivals.

Apple and other major tech companies are also under pressure from a sweeping antitrust law that will take full effect on March 7. The Digital Markets Act (DMA) requires tech companies to allow third-party app stores, makes it easier for users to switch to rival platforms, and prohibits the pooling of personal data across multiple services.

To comply with this regulation, Apple has adjusted its developer fees in the EU, allowing users to install external app stores on their iPhones.

Thanh Thang

Source: https://www.baogiaothong.vn/apple-bi-phat-gan-2-ty-usd-19224030506314747.htm