The European Commission announced this Tuesday that it has imposed a penalty of 18The fine of 300 million euros (about 2.2 billion US dollars) is the highest in the history of EU antitrust. The European Commission has found that Apple violated the EU's antitrust regulations by engaging in unfair competition with **streaming** apps through the App Store, limiting consumer choice and innovation.
Margrethe Vestager, executive vice president of competition policy at the European Commission, said in a statement: "For a decade, Apple has abused its dominant position in the market to distribute **streaming** apps through the App Store. They do this by restricting developers from offering consumers alternative, cheaper** services outside of Apple's ecosystem. This is illegal under EU antitrust law, so today we fined Apple more than 1.8 billion euros. ”
The European Commission's investigation began in 2019 when Spotify filed a formal complaint with the European Union, alleging that Apple had engaged in unfair competition with the **streaming** app through the App Store. Spotify is the world's largest streaming service provider with more than 3500 million active users, of which more than 1500 million are paying subscribers. Spotify's main competitor is Apple's Apple Music, which was launched in 2015 and currently has over 80 million paid subscribers.
Spotify's complaints mainly involve the following aspects:
Apple has reduced its competitiveness with Apple Music by charging commissions of up to 30% to force third-party service providers like Spotify to increase their subscription fees. Apple also prohibits apps like Spotify from offering cheaper subscription options to users through channels other than the App Store, or informing users how to avoid paying commissions.
Apple has weakened its connection and loyalty to users by restricting the channels of communication between third-party service providers such as Spotify** and users. Apple prohibits apps like Spotify from sending users messages about events, new features, or other information via email, push notifications, or other means.
Apple has weakened its competitiveness in the streaming market by prioritizing its own Apple Music, as well as limiting the availability and functionality of third-party service providers such as Spotify on Apple's devices and platforms. For example, Apple doesn't allow apps like Spotify to be fully integrated on devices like Siri, HomePod, Apple Watch, or compete on an equal footing with Apple Music on platforms like CarPlay.
The European Commission investigated Spotify's complaint and issued an antitrust complaint against Apple in 2020, arguing that Apple's actions constituted unfair competition against the streaming app to the detriment of consumer interests and innovation. "Apple's actions have affected not only **streaming** service providers such as Spotify, but millions of European consumers who use iOS devices to enjoy **streaming** apps," the European Commission said in the indictment. By setting unfair rules, Apple deprives consumers of choice and innovation in a streaming market. ”
Apple has denied the EU's allegations, saying it has not violated any laws and has provided a safe, secure and high-quality platform for developers and users. Apple said it would appeal the EU's decision to defend its legitimate rights and interests in the **stream** market. "The EU's decision is an unfair and unjustified intervention for millions of European developers and consumers that will weaken innovation and competition, rather than promote them," Apple said in a statement. We are deeply disappointed by the EU's decision and we will appeal to continue to provide the best possible service to our developers and users. ”
Apple also pointed out that the EU's decision was made under pressure from Spotify, and that much of Spotify's success is due to the App Store, which has never paid Apple a penny for it. "Spotify, based in Stockholm, Sweden, is the main proponent of this decision and the biggest beneficiary," Apple said in a statement. Spotify has the world's largest streaming app and met with the European Commission at least 65 times during the investigation. Spotify currently has a 56% share of the European streaming market, more than twice as much as its closest competitor, and has never paid Apple anything for the services it received to help it become a globally recognized brand. Much of Spotify's success is due to the App Store and the tools and technologies Spotify uses to build, update, and share its apps with Apple users around the world. We're proud to play a key supporting role in Spotify's success—just as we've worked tirelessly to support developers of all sizes since the early days of the App Store. ”
The EU's fine on Apple is the latest development in long-standing tensions between the EU and Apple. The European Union has been conducting a number of antitrust investigations against Apple over its practices in areas such as payments, e-books, app stores, and more. The European Union has also filed billions of euros in tax claims against Apple, alleging that it enjoyed unfair tax benefits in Ireland. Apple, for its part, has been engaged in a legal battle with the European Union to try to overturn the EU's decisions and demands. Apple is also in conflict with the European Union regarding its privacy and data protection policies, especially after the European Union implemented the General Data Protection Regulation (GDPR).
The EU's fine on Apple has also sparked international attention and discussion, with some seeing it as a form of suppression and retaliation by the EU against US tech giants, while others see it as an expression and practice of the EU to uphold its digital sovereignty and values. The EU's fine on Apple could have a profound impact on the global market and could also cause further tension and rift in the relationship between Apple and the EU.
The EU's fine for Apple is based on Article 102 of the EU's Competition Law, which prohibits any dominant business from abusing its market position to the detriment of fair competition and consumer welfare. The European Commission has the power to impose fines of up to 10% of global turnover on companies that violate this article. When calculating fines, the European Commission takes into account factors such as the seriousness, duration, scope of impact, and degree of cooperation of Apple's violations. The European Commission said the fine against Apple was based on 125%。The European Commission also said that Apple must stop its violations within three months and report to the European Commission on the measures it has taken.
The EU's fine on Apple has sparked mixed reactions from all sides. Spotify's CEO, Daniel Ek, said on Twitter that he was pleased with the EU's decision, believing it was a "historic moment" that would bring more fairness and transparency to Europe's digital market. He also called on other countries and regions to take similar actions to protect the rights and interests of developers and consumers. On the other hand, Apple's supporters and adherents believe that the EU's decision is a punishment for Apple's innovation and success, and a disrespect for the quality of services it provides to developers and users. They also point out that the EU's decision could compromise the security and quality of the App Store, increasing risks and costs for users.
The EU's fine on Apple is the latest development in long-standing tensions between the EU and Apple. The European Union has been conducting a number of antitrust investigations against Apple over its practices in areas such as payments, e-books, app stores, and more. The European Union has also filed billions of euros in tax claims against Apple, alleging that it enjoyed unfair tax benefits in Ireland. Apple, for its part, has been engaged in a legal battle with the European Union to try to overturn the EU's decisions and demands. Apple is also in conflict with the European Union regarding its privacy and data protection policies, especially after the European Union implemented the General Data Protection Regulation (GDPR).
The EU's fine on Apple has also sparked international attention and discussion, with some seeing it as a form of suppression and retaliation by the EU against US tech giants, while others see it as an expression and practice of the EU to uphold its digital sovereignty and values. The EU's fine on Apple could have a profound impact on the global market and could also cause further tension and rift in the relationship between Apple and the EU.
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