Apple Fined Nearly $2 Billion by EU for Unfairly Favoring Its Own Music Streaming Service
The European Union has slapped a hefty fine of almost $2 billion on tech giant Apple. This penalty comes after the company was found guilty of violating the bloc’s competition laws by giving preferential treatment to its in-house music streaming service, Apple Music. The European Commission ruled that Apple had unfairly prohibited app developers from informing iOS users about cheaper alternatives to its own music subscription platform.
For almost ten years, this anti-competitive practice forced users to pay exorbitant prices for music streaming subscriptions. The fine is the outcome of a long investigation, initiated by a complaint filed by Spotify, a leading competitor in the music streaming industry.
In a further blow to Apple, the European Commission has also initiated a separate anti-trust investigation into the company’s mobile payments service. This investigation will scrutinize whether Apple is exploiting its dominant market position to stifle competition, in a bid to gain an unfair advantage over its rivals.
Despite the severe penalty, Apple has announced its intention to appeal the decision. The company argues that the ruling fails to acknowledge the highly competitive nature of the market and lacks sufficient evidence of any harm to consumers. Apple holds firm that its actions were geared towards prevailing in a growing market that thrives on competition.
The verdict of the EU and its hefty fine for curtailing competition sends a strong message to tech giants like Apple, emphasizing the need to adhere to fair practices that promote healthy competition within the European market.
Analyst comment
Negative news for Apple. Market may be affected as the hefty fine and ongoing antitrust investigation could damage Apple’s reputation and lead to increased scrutiny of its practices. Apple’s appeal may prolong the uncertainty and drag down investor confidence.
