Margrethe Vestager, European Commission's executive vice-president in charge of competition policy | European Commission press release
After an extensive four-year investigation, the European Commission has imposed a fine exceeding €1.8 billion on Apple. The Commission concluded that Apple had exploited its leading market position as a distributor of music streaming apps to iPhone users.
According to a press release from the European Commission, it was determined that Apple's anti-steering provisions were in violation of EU antitrust laws. These provisions hindered app developers from informing iOS users about more affordable alternative music subscription services available outside the app. Furthermore, developers were prohibited from providing instructions on subscribing to offers associated with these alternatives.
The press release further clarified that the European Commission found Apple's anti-steering provisions to be in violation of Article 102(a) of the Treaty on the Functioning of the European Union. The Commission stated that Apple's conduct, which spanned over a decade, potentially compelled iOS users to pay inflated prices for streaming subscriptions. "These anti-steering provisions are neither necessary nor proportionate for the protection of Apple's commercial interests in relation to the App Store on Apple's smart mobile devices and negatively affect the interests of iOS users, who cannot make informed and effective decisions on where and how to purchase music streaming subscriptions for use on their device," said the commission.
In addition to levying a hefty fine, according to another press release by the European Commission, it ordered Apple to abolish its anti-steering provisions. The tech giant was also directed not to repeat such infringements or implement similar practices in future.
Apple released a public statement after the commission announced its decision, accusing it of failing to present credible evidence demonstrating consumer harm resulting from its conduct. The company claimed that the commission "ignores the realities of a market that is thriving, competitive, and growing fast" and suggested Spotify - which lodged this complaint with the commission in 2020 - would be the "biggest beneficiary" of this decision.
According to Apple's statement, they plan to contest the European Commission's decision. "Apple has been a part of Europe for over 40 years, and today, we support more than 2.5 million jobs across the continent. We’ve helped markets thrive, promoting competition and innovation at every turn—and the App Store is an important part of that story. So while we respect the European Commission, the facts simply don’t support this decision. And as a result, Apple will appeal," the statement read.
