Apple Faces Record Fine for Anticompetitive Practices in Music Streaming Services

European Union fines Apple billions for “Unacceptable Business Practices”

Apple is facing a fine of 1.84 billion euros by the European Commission for abusing its power in the market for music streaming services. The Commission found that consumers using Apple products may not be adequately informed by music streaming service developers about alternative or cheaper subscription options outside of the app due to Apple’s App Store being the only platform available to reach customers.

Such practices are not allowed in the European Union, resulting in the hefty fine imposed on Apple. The Commission aims to force Apple to abandon its policies and remove the objectionable conditions. European Commissioner for Competition Policy, Margrethe Vestager, provided examples of Apple’s unacceptable practices, including restrictions on informing subscribers about other subscription options within the app, integrating hyperlinks to their websites, and contacting customers outside of the App Store.

Apple’s policy has been in place for almost a decade and has led to higher subscription prices for developers of streaming apps. Due to Apple’s market monopoly, developers face the choice of accepting the imposed conditions or leaving the App Store, potentially losing iOS users among their subscribers. The European Commission’s decision aims to address these anticompetitive practices imposed by Apple.

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