Apple hit with $2 billion EU antitrust fine in Spotify case، will appeal

Brussels on Monday fined Apple   1.84 billion euros ($2 billion) for thwarting competition from music streaming rivals via restrictions on its App Store، the iPhone maker's first ever penalty for breaching EU rules.

The European Commission charged Apple last year with preventing Swedish streaming service Spotify  and others from informing users of payment options outside its App Store، following a 2019 complaint by Spotify.

It said on Monday Apple's restrictions constituted unfair trading conditions، a relatively novel argument in an antitrust case and also used by the Dutch antitrust agency in a decision against Apple in 2021 in a case brought by dating app providers. It ordered it to stop such conduct.

Apple said it would appeal the decision. A ruling at the Luxembourg-based General Court، Europe's second-highest، is likely to take several years. Until then، Apple will have to pay the fine and comply with the EU order.

Apple's shares opened down 2%.

Deterrent lump sum

The penalty، the first time the Commission has added a deterrent lump sum on top of an antitrust fine as a deterrent، dwarfed the 500 million euros sources with knowledge of the matter had told Reuters they expected to be meted out to Apple.

It comprised a basic element of 40 million euros - described by European Competition Commissioner Margarethe Vestager as a "parking ticket" for the U.S. tech giant - plus 1.8 billion euros slapped on top as a deterrent. The 1.84 billion euros total is equal to 0.5% of Apple's global turnover، she said.

Apple criticised the decision، saying in a statement 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".

"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.