EU Fines Apple €1.8 Billion for Restrictive App Store Practices in Music Streaming
- News Agency
- Mar 7, 2024
- 1 min read
The European Commission has imposed a €1.8 billion fine on Apple for abusing its market dominance by enacting restrictive App Store policies that limited music streaming app developers' ability to inform users about cheaper subscription options outside the Apple ecosystem. These actions, deemed illegal, affected millions of European consumers by obstructing their freedom to choose where and how to purchase music streaming services at the best prices. The investigation revealed that Apple's so-called 'anti-steering rules' prohibited developers from directing users within their apps to less expensive alternatives or contacting them about such options, thus forcing higher prices due to Apple's 30% commission on in-app purchases.
This restriction not only concealed vital information from consumers but also inflated service costs. As a result, the Commission has ordered Apple to eliminate these anti-steering provisions and refrain from similar practices in the future, highlighting the importance of competition law in the digital single market. This fine reflects Apple's significant financial power and the extensive harm its practices have inflicted on European users, aiming to ensure more choice and freedom in the digital marketplace in line with the upcoming Digital Markets Act (DMA) requirements. Apple's recent changes to its App Store model are under review to ensure compliance with the DMA, indicating a move towards a more open digital ecosystem for consumers and developers alike.
.png)
Comments