EU fines Apple €1.8bn over App Store restrictions on music streaming
www.theguardian.com
Penalty for breaching competition law is four times higher than forecast as Brussels looks to send message to tech firms

  • Apple has been fined €1.8bn ($2bn) by the EU after an investigation found it had limited competition from music streaming services such as Spotify.

  • The European competition commissioner, Margrethe Vestager, said a smaller fine would have been nothing more than the equivalent of a parking fine and the €1.8bn was designed to act as a deterrent against a repetition of such practices by Apple or others.

  • “Apple’s rules ended up harming consumers. Critical information was withheld so that consumers could not effectively use or make informed choices. Some consumers may have paid more because they weren’t aware that they can pay less if they subscribed outside of the app,” Vestager said.

  • Vestager said consumers may have paid two or three euros a month more for music streaming because of the lack of open competition. However, she conceded that the fine would not be distributed to customers who had been allegedly exploited but to individual member states.

  • She said the fine represented 0.5% of Apple’s global turnover.

  • AutoTL;DR@lemmings.worldBEnglish
    6·
    4 months ago

    This is the best summary I could come up with:

    The fine is nearly four times higher than expected as the European Commission attempts to show it will act decisively on tech companies who abuse their dominant position in the market for online services.

    “Apple’s conduct, which lasted for almost 10 years, may have led many iOS users to pay significantly higher prices for music streaming subscriptions,” the European Commission said in a statement.

    The tech company disadvantaged users by restricting app developers from openly promoting cheaper music subscription services available outside the Apple “ecosystem” , the commission found.

    Responding to the fine, Apple said: “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.

    “Today, Spotify has a 56% share of Europe’s music streaming market – more than double their closest competitor’s – and pays Apple nothing for the services that have helped make them one of the most recognisable brands in the world.

    Max von Thun, the Europe director of the Open Markets Institute, which researches the impact of corporate monopolies, said the large fine “sets a positive precedent which the EU would do well to draw on in future enforcement actions against tech giants”.

    The original article contains 842 words, the summary contains 207 words. Saved 75%. I’m a bot and I’m open source!