March 4, 2024 at 01:04PM
The European Commission has fined Apple €1.8 billion for abusing its dominant position in the music streaming app market by imposing restrictions on app developers, preventing them from promoting cheaper services outside the App Store. Apple denies consumer harm and anti-competitive behavior, claiming the primary beneficiary of the decision is Spotify and plans to appeal the fine.
Based on the meeting notes, the key takeaways are as follows:
1. The European Commission has fined Apple €1.8 billion for allegedly abusing its market dominance in music streaming app distribution, specifically for applying restrictions on app developers preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app.
2. The Commission’s investigation was initiated following complaints from Spotify and an e-book/audiobook distributor regarding Apple App Store policies, including charging a 30% commission fee on all subscription fees through Apple’s in-app purchase system (IAP) and preventing developers from promoting cheaper membership options outside the app.
3. Apple has stated that they believe the European Commission has not found any evidence of consumer harm or proof of anti-competitive behavior, and that the primary benefactor of the decision is Spotify.
4. Apple has announced that they will be appealing the fine imposed by the European Commission.
These are the clear takeaways from the meeting notes regarding the European Commission’s fine on Apple and Apple’s response to the decision.