Apple receives a huge fine from the European Union. The company is holding back music streaming services like Spotify from offering cheaper subscriptions outside of Apple. For example, Apple is abusing the power it has in its App Store for iPhone and iPad, according to European Commission rules.
The American company must pay 1.8 billion euros because of the way it provides music streaming services on iPhones and iPads. The panel found that developers faced restrictions from Apple. Because of these limitations, app makers were unable to inform their customers about alternative and cheaper subscriptions outside of the Spotify app.
The commission says Apple’s approach may have resulted in iOS users paying higher prices for music streaming services. Because the subscription costs more money through the App Store than it does on the developers’ site themselves, because the costs are passed on to Apple.
According to Brussels, the fact that Apple now has to pay a fine of 1.8 billion euros is necessary as a deterrent to change its policy. This fine is the first imposed by the European Union on Apple.
Apple thinks the EU is wrong
The company said Apple could never agree with the committee’s conclusions. “There is no evidence that consumers have suffered any harm as a result,” Apple said. “The Commission also ignores the reality of a competitive market that is thriving and growing rapidly.”
The Cupertino-based company says Spotify is the biggest reason the EU reached this ruling. But according to Apple, the music service is twice the size of its direct competitors, and therefore dominates the market itself.
Here lies the problem, according to Apple, which is appealing against the fine. “Spotify wants to bend the rules in their favor by including subscription prices in their app. They want to use our tools and technologies and distribute them through the App Store, but they pay nothing for it.”
“Apple’s new rules are more harmful”
Last week, Spotify signed with other app makers like Epic Games (from the game fortnite) and music service Deezer a Letter to the European Commission. That letter was about concerns that Apple would not comply with the new European digital markets law. This law aims to prevent powerful technology companies from imposing unfair terms on companies and users.
The developers claim that Apple has changed its rules to comply with the law, but this puts them at an even greater disadvantage.
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