Home The EU punishes Apple €1.8 billion (£1.5 billion) for streaming violations

The EU punishes Apple €1.8 billion (£1.5 billion) for streaming violations

The European Commission has fined Apple €1.8 billion (£1.5 billion) for streaming violations.  So,1,800,000,000 EUR is equal to 1,952,277,657 USD @ 1.08 US dollars to 1 Euro. Anyway you figure it, this is a significant fine. The reason is that the EU said it’s because the streaming service didn’t inform users of payment options outside the Apple app store.

Margrethe Vestager has said in the music market Apple has abused its dominant position for over a decade — and she ordered the music giant to remove all restrictions. Apple replies that it will appeal the decision and that there is no evidence that any consumers were harmed. Ms Vestager also said that Apple restricted “developers from informing consumers about alternative, cheaper music services outside of the Apple ecosystem, which is illegal under EU antitrust rules.”

The DMA — promoting competition

The DMA of the European Union aims to promote competition in the technology sector and attempt to weaken the market dominance of companies such as Apple and Google.

Ahead of the impending introduction of the Digital Markets Act (DMA), Apple said in January that it would permit users in the European Union to download apps from stores other than its own.

The Swedish music streaming provider Spotify filed a protest with the European Commission, citing dissatisfaction with both the restriction and Apple’s 30% fee, prompting the EU to take a closer look.

Apple said, “The decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm and ignores the realities of a market that is thriving, competitive, and growing fast.’

Spotify is the largest music streaming app in the world

Apple claims that “Spotify has the largest music streaming app in the world and has met with the EC [European Commission] more than 65 times during this investigation.” Previously, Spotify claimed that the EU restrictions helped Apple’s rival music streaming service — Apple Music.

Apple’s protracted legal spat with Fortnite developer Epic Games led to the introduction of US fees in the first place. The largest developers pay 30% to utilize this method, whereas smaller developers charge 15% or less, and 85% of developers pay nothing at all.

Apple pointed out, “The primary advocate for this decision, and the biggest beneficiary, is Spotify, a company based in Stockholm, Sweden.

Featured Image Credit: Sami Abdullah; Pexels

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Deanna Ritchie
Lead Editor

Deanna is an editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind, Editor in Chief for Calendar, editor at Entrepreneur media, and has over 20+ years of experience in content management and content development.

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