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Apple Hit with $2 Billion EU Fine for App Store Restrictions

At The Verge, Jon Porter and Jess Weatherbed write:

Apple has been hit with a fine of €1.84 billion (about $2 billion) by European Union antitrust regulators over its App Store rules, and has been told it cannot stop music services from advertising cheaper subscription deals outside of Apple’s store.

In its press release, the European Commission says:

The European Commission has fined Apple over €1.8 billion for abusing its dominant position on the market for the distribution of music streaming apps to iPhone and iPad users (‘iOS users’) through its App Store. In particular, 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 (‘anti-steering provisions’). This is illegal under EU antitrust rules.

Unsurprisingly, Apple is extremely unhappy about the ruling and will be appealing. The company published a blistering response, saying:

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.

We’ll see if Apple’s appeal goes anywhere, but once companies wield sufficient market power, attacks like this from competitors and governments alike are inevitable.

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Comments About Apple Hit with $2 Billion EU Fine for App Store Restrictions

Notable Replies

  1. Nick Heer has an in-depth discussion of this situation that’s worth reading if you’re interested.

  2. Good time to buy Apple Stock.

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