EU Slaps Apple with €1.84 Billion Fine for Anti-Steering Practices in iOS Music Streaming Market

The European Union has imposed a hefty fine of €1.84 billion (nearly $2 billion) on Apple for violating antitrust regulations within the market for music streaming services on its mobile platform, iOS. The penalty centers on Apple’s anti-steering provisions, which limit the ability of music streaming apps to inform consumers about cheaper offers outside of Apple’s App Store.

Apple, with its own music streaming service, Apple Music, has faced accusations from rivals like Spotify, arguing that these restrictions give Apple an unfair advantage. The European Commission concurs, stating that Apple’s rules have hindered consumers from making informed choices and have ultimately harmed them by withholding critical information on prices and features.

This decision comes after a lengthy antitrust complaint by Spotify in March 2019, which criticized Apple’s App Store rules for limiting choice and innovation. The Commission launched a formal investigation into the App Store in June 2020, expressing concerns about the conditions and restrictions applied by Apple. Although the initial case included various charges, the focus narrowed to the anti-steering provisions in a revised statement of objections issued in April 2021.

The Commission’s penalty not only includes a fine for breaching EU rules but also accounts for the harm caused to consumers. Apple has vowed to appeal the decision, accusing the EU of lacking credible evidence of consumer harm and misinterpreting the market’s competitive landscape.

Regarding compliance with the Digital Markets Act (DMA), Apple has proposed unbundling the App Store fee structure rather than reducing its cut, drawing criticism from developers who perceive it as maintaining its dominance. The DMA does not regulate prices but aims to ensure fair competition and open digital markets.

While Spotify and other developers have welcomed the Commission’s decision, criticism remains regarding Apple’s compliance proposal under the DMA. Some argue that it perpetuates Apple’s dominance and unfairly affects developers’ profitability.

Overall, the EU’s enforcement actions underscore its commitment to upholding competition laws in digital markets and protecting consumer interests. However, the ongoing debate highlights the complexities of regulating platforms like Apple’s App Store and the challenges of achieving a fair and competitive landscape for all stakeholders involved.