Apple faces EU fine
Apple faces an AU$3 billion from the EU of App Store antitrust violations.
The European Union has imposed a €1.8 billion (AU$3 billion) fine on Apple, citing anticompetitive practices within its App Store.
The ruling delivered this week is a significant rebuke to the tech giant's operations, particularly concerning its music streaming competition.
The fine stems from a five-year investigation initiated by Spotify, which accused Apple of exploiting its App Store dominance to disadvantage rivals.
“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” says Margrethe Vestager, the European Commission's executive vice president in charge of competition policy.
She said the penalty reflects Apple's “financial power and the harm that Apple’s conduct inflicted on millions of European users”.
Apple's stringent control over its App Store, including mandating the use of its in-app payment system and collecting up to a 30 per cent commission on transactions, has been a point of contention.
This model has faced criticism not only in Europe but also in the Netherlands and South Korea, where regulatory efforts to introduce alternative payment services have been met with resistance from Apple.
In response to the EU's fine, Apple announced its intention to appeal, arguing that the Commission's decision disregards the evidence and fails to recognise the competitive nature of the market.
Apple defends its practices by highlighting the growth of Spotify's subscriber base and accusing Spotify of seeking access to Apple's platform and tools without fair compensation.
This fine is part of the EU's broader regulatory push against major tech companies, aiming to ensure fair competition and consumer protection.
The EU has recently enacted the Digital Markets Act, which mandates major platform operators like Apple to allow alternative app stores and payment systems, in an effort to level the playing field for app developers.