Apple hit with $2 billion EU antitrust fine in Spotify case, will appeal
By Foo Yun Chee
BRUSSELS (Reuters) -Brussels fined Apple (NASDAQ:AAPL) 1.84 billion euros ($2 billion) on Monday, the iPhone maker's first ever EU antitrust penalty, for preventing Spotify (NYSE:SPOT) and other music streaming services from informing users of payment options outside its App Store.
The European Commission's decision was triggered by a 2019 complaint by Swedish music streaming service Spotify over this restriction and Apple's 30% App Store fees.
The European Union regulator said 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.
The penalty dwarfed the 500 million euros sources with knowledge of the matter had told Reuters they expected the Commission to mete 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 EU decision, saying it would challenge it in court. 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.
«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,» the company said in a statement.
«The primary advocate for this decision — and the biggest beneficiary — is Spotify,
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