The EU has imposed a hefty fine of 1.8 billion euros on Apple, find out the reasons.
Apple Music: The European Union has imposed a hefty penalty of 1.8 billion euros, approximately 1.95 billion dollars, on Apple. In Indian Rupees, this amount is more than 16,168 crores. The fine was levied on Apple because an investigation found that their competition in the music streaming service, like Spotify, was significantly restricted.
The imposed fine on Apple is four times higher than expected by the European Union, showcasing its commitment to take strong actions against tech companies that misuse their dominant position in the online service market.
The European Commission’s Competition Commissioner, Margrethe Vestager, stated that the fine is designed to be more than just a parking ticket, emphasizing the seriousness of the penalty. The 1.8 billion euros fine is intended to prevent Apple or similar companies from repeating such actions. Vestager mentioned, ‘I think it is essential to see that if a powerful company does something illegal, it will be punished. We want to show our determination in such cases.’ She further explained that due to Apple’s competition-unfriendly rules, regular users had to pay more for music streaming services.
The global turnover of 0.5%: Vestager stated that Apple’s rules caused harm to consumers by preventing crucial information, leading to some customers paying more as they were unaware that subscribing outside the app might result in lower payments. She mentioned that this penalty constitutes 0.5% of Apple’s global turnover.
The world’s largest music streaming service, Spotify, argued that Apple Music benefits from restrictions. Spotify and other music platforms have consistently criticized Apple’s App Store policies, claiming that charging a 30% fee on app and in-app purchases always stifles competition.”