On Monday, Apple faced its inaugural EU antitrust penalty, amounting to Rs 16,167 crore (over $1.95 billion), as per reports. The fine was imposed for obstructing Spotify and other music streaming platforms from informing users about payment alternatives beyond Apple’s App Store. The European Commission’s decision to levy the fine stemmed from a complaint filed by Spotify regarding this constraint and Apple’s imposition of 30% app store fees.
The European Union competition regulator deemed Apple’s restrictions as unfair trading conditions, a relatively novel argument in antitrust cases. This argument echoed the Dutch antitrust agency’s decision against Apple in 2021, particularly concerning dating app providers. Additionally, the EU competition regulator imposed an additional lump sum of 1.8 billion euros as a deterrent to Apple, in addition to the basic fine amount.
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Apple’s fine, at over $1.95 billion, is significantly less than the 8.25 billion euros Google faced in three previous cases. In a different antitrust investigation, Apple is proposing to open its mobile payment systems to rivals, likely avoiding further penalties as EU regulators seek feedback.
The decision to penalize Apple was influenced by the recognition that a significant portion of the harm caused by its actions was non-monetary. However, the regulator did not provide specifics regarding the exact basic amount of the fine.
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