iPhone Maker Apple Slapped With A Rs 16,000 Crore Fine In Europe, Here's Why

In a big setback for world's second most valuable company and iPhone maker Apple, the tech giant has received its first-ever EU antitrust fine, though the company is challenging it.

Apple Slapped With A Nearly $2 Billion Fine In Europe

apple ceo tim cook/mint

A penalty of more than 1.8 billion Euros ($1.95 billion) has been slapped on Apple for preventing Spotify and other music streaming services from alerting customers to payment options available outside of its App Store. This translates to approx Rs 16,141 crore fine.

The Swedish music streaming service Spotify filed a complaint with the European Commission in 2019 regarding this restriction and Apple's 30% App Store fees, which led to the Commission's decision, as per Reuters report.

The Dutch antitrust agency used this relatively new argument in a 2021 ruling against Apple in a case brought by dating app providers. The European Union competition enforcer claimed that Apple's restrictions constituted unfair trading conditions.

The EU competition enforcer claimed that in order to deter Apple and because a sizable portion of the harm brought about by Apple's actions was non-monetary, it added a lump sum of 1.8 billion euros to the base amount. It didn't specify the baseline amount.

Allegations Against iPhone Maker Apple

apple 2 billion eu fine/apple

""For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store," EU antitrust chief Margrethe Vestager said in a statement.

"They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem. This is illegal under EU antitrust rules," she said.

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Apple Denies Any Wrongdoing

NME

"The decision was reached despite the Commission's failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast," Apple has said in a statement.

"The primary advocate for this decision - and the biggest beneficiary - is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation," it said.

Apple also said that Spotify pays no commission to Apple as it sells its subscriptions on its website and not on Apple's App Store.

On the other hand, unlike the music streaming case, Apple is attempting to resolve an additional EU antitrust investigation by providing competitors with access to its tap-and-go mobile payment systems. EU regulators, who subsequently asked competitors and users for input, are probably going to accept its offer without penalizing the company.

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