Apple has been fined a whopping 1.8 billion euros (about 14 billion yuan), and it looks like the company is struggling to get through it. Of course, the Cupertino giant was not too happy about the situation and even issued a statement that it planned to appeal to the European Commission. However, the outcome is still unknown.
The statement comes directly from the European Commission, which has fined the company more than 1.8 billion euros for abusing its apparent dominance in the market. For those who don't know, Apple has been imposing restrictions on app developers. These restrictions prevent these developers from informing iOS users about alternative and cheaper** subscription services that can be used outside of the app. The EU calls these "anti-guidance clauses", which are illegal under the EU's antitrust rules.
The European Commission has some common views on these so-called provisions.
In-app notification to iOS users about subscriptions from the out-of-app network (i.e., outside of the Apple-controlled ecosystem).
Inform iOS users in-app about the difference between subscribing to Apple's in-app purchase and other choices.
Include a link in their app that directs users to the developer's purchase of an alternative subscription.
App developers also won't be able to contact new users via email to inform them of other pricing options once they've set up an account.
The European Commission even spoke of these anti-manipulation clauses resembling unfair conditions under EU law, and that they are neither necessary nor proportionate in helping Apple achieve its commercial interests. In addition to that, these regulations are also not good for iOS users as users are not able to make informed decisions.
Apple did not back down and issued a statement talking about how the company would appeal the decision of the European Commission. Apple also said something about Spotify and that Spotify was **re** or updated more than 119 billion times on all Apple devices without paying any money to Spotify. The following is an excerpt from the official statement.
Instead, Spotify wants to tilt the rules in its favor by embedding subscriptions** in the app without using the app store's in-app purchasing system. They want to use Apple's tools and technology, publish them on the App Store, and benefit from the trust we've built with our users — without paying Apple anything for it.
Whatever happens to Apple's appeal, we will see in the future, but at the time of writing, it feels like the EU is finding its own way. We will keep you informed of developments by closely following developments.