Apple has been fined $2 billion by European Union for antitrust policy

Technology
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Margrethe Vestager | European Commission Executive Vice President | commissioners.ec.europe.eu

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The European Union (EU) has imposed a $2 billion fine on Apple for breaching antitrust policies. The EU alleges that Apple prohibited app developers from fully informing iOS users about more affordable music subscription services.

The penalty arises from an antitrust complaint lodged by Spotify against Apple in 2019. Spotify contended that Apple served as a gatekeeper by controlling significant platforms such as the App Store. The investigation focused on Apple's practice of compelling iPhone app developers to use its proprietary payment system, which levies a 30% commission on all subscriptions. Additionally, the probe examined how Apple prevents app creators from notifying their users about cheaper subscription options not associated with an app. The investigation concluded that Apple has forbidden streaming services from informing users about subscription offers via email or links within the app.

The EU has been at the forefront of global efforts to regulate Big Tech companies. As reported by AP news, Apple has faced scrutiny from the European Union over the past decade. In 2016, the company was ordered to repay $15 billion in taxes to Ireland. However, Apple emerged victorious in this court case in 2020 when the EU general court ruled that there was insufficient evidence to demonstrate that the Irish government had granted Apple a tax advantage. Moreover, the EU has penalized Google and Meta for distorting the online classified ad market and initiated a separate antitrust investigation into Apple's mobile payments service. The EU recently enacted the Digital Markets Act designed to curb tech companies' behaviour similar to that of Apple's.

European Commissioner Vice President Margrethe Vestager stated, "Not only are they not allowed to mention their websites or any link to them in their own apps, they are also not allowed to send emails to users that created an account in the app in order to inform them about cheaper alternatives." Apple has been given 12 weeks to respond to the fine imposed by the EU.

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