EU fines Apple $2 billion in antitrust case brought by Spotify

BRUSSELS, Belgium: This week, Apple was fined 1.84 billion euros (US$2 billion) by the European Union (EU) for stifling competition from music streaming rivals through restrictions on its App Store.

In a first for an EU antitrust authority, a lump sum was added onto a basic penalty of 40 million euros, the iPhone maker’s first-ever penalty for breaching EU rules, as a deterrent.

In 2023, the European Commission charged Apple with preventing Spotify and app firms from informing users of payment options outside its App Store, following a 2019 complaint by the Swedish streaming service.

On Mar 4, the commission said Apple’s restrictions constituted unfair trading conditions. In response, Apple said it would appeal the decision.

The fine was nearly four times the 500 million euros the European Commission was expected to impose on Apple.

In a statement, Apple criticized the decision. "It 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," it said.

"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," Apple added.

Meanwhile, Spotify lauded the EU decision but said there were other issues in other areas.

In a statement, the company said, "And while we are pleased that this case delivers some justice, it does not solve Apple’s bad behavior towards developers beyond music streaming in other markets around the world."

However, analyst Ryan Reith at tech and services company IDC, said that while the fine is considerable, "Apple can handle it without any immediate cash impact."

"I believe this is another step in the ongoing process of breaking down some of the walled gardens that Apple has created around its ecosystem," he added.

The EU regulator has also fined Alphabet’s Google 8.25 billion euros over three cases during the past three decades.