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LONDON DAILY ARCHIVE

Apple Incurs €1.8 Billion EU Fine for Restricting Music Streaming Choices

The EU has fined Apple €1.8 billion for not informing iPhone and iPad users about cheaper music streaming services, a practice that led customers to overpay.

08 March 2024 · 01:57 UTC

The EU's decision follows a Spotify complaint and a five-year investigation, which revealed that Apple barred developers from promoting alternative, less expensive music subscription options, favouring its own service and maintaining a dominant market position.

Apple, criticized for stifling competition, now must enable other app stores and payment methods on its devices in Europe but plans to appeal, arguing no harm to consumers.

Despite the penalty being a mere 0.5% of its global revenue, the UK will benefit financially as part of the 28 nations sharing the fine. This case marks the first EU antitrust fine for Apple, and coincides with new legislation, the Digital Markets Act, mandating mobile manufacturers to offer diverse payment systems and app stores.