 "Apple pushes back on EU's $2 billion fine over App Store practices, claims no credible evidence of consumer harm")
Apple has officially decided to contest the €1.8 billion ($1.95 billion) antitrust fine imposed by the European Union. The penalty, issued in March, stemmed from allegations that Apple restricted competing music streaming services on its App Store, a claim initiated by Spotify in 2019.
Apple had previously vowed to challenge the decision, asserting that the EU had not presented “any credible evidence of consumer harm.” Bloomberg has now reported that Apple has proceeded with a lawsuit to overturn the ruling.
In addition to the financial penalty, the EU mandated that Apple cease preventing rival music-streaming services from informing users about the possibility of signing up for their services at lower prices outside the App Store. Spotify argued that it was forced to raise subscription prices to offset the costs associated with Apple’s App Store policies.
This is despite the fact that Spotify does not offer an option to upgrade to its Premium service directly through its iOS app, as doing so would require paying a commission to Apple. Apple, on the other hand, contends that Spotify does not pay anything to it, even though Spotify utilizes Apple’s APIs, beta testing tools, and other resources.
Spotify’s grievance was lodged before the enforcement of the Digital Markets Act, a law that prohibits designated gatekeepers — such as Apple and Google, the operator of the Play Store — from preventing developers from informing users about cheaper payment options outside of their app marketplaces. The EU is currently investigating both Apple and Google for their adherence to this regulation.
Impact Shorts
More ShortsThe ongoing legal and regulatory scrutiny highlights the growing tension between major tech companies and regulatory bodies over market practices and the control exerted by platform operators. This case will be closely watched as it could set significant precedents for how app marketplaces operate and how consumer rights are protected in digital environments.
(With inputs from agencies)
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