Home The EU punishes Apple €1.8 billion (£1.5 billion) for streaming violations

The EU punishes Apple €1.8 billion (£1.5 billion) for streaming violations

The European Commission has fined Apple €1.8 billion (£1.5 billion) for streaming violations.  So,1,800,000,000 EUR is equal to 1,952,277,657 USD @ 1.08 US dollars to 1 Euro. Anyway you figure it, this is a significant fine. The reason is that the EU said it’s because the streaming service didn’t inform users of payment options outside the Apple app store.

Margrethe Vestager has said in the music market Apple has abused its dominant position for over a decade — and she ordered the music giant to remove all restrictions. Apple replies that it will appeal the decision and that there is no evidence that any consumers were harmed. Ms Vestager also said that Apple restricted “developers from informing consumers about alternative, cheaper music services outside of the Apple ecosystem, which is illegal under EU antitrust rules.”

The DMA — promoting competition

The DMA of the European Union aims to promote competition in the technology sector and attempt to weaken the market dominance of companies such as Apple and Google.

Ahead of the impending introduction of the Digital Markets Act (DMA), Apple said in January that it would permit users in the European Union to download apps from stores other than its own.

The Swedish music streaming provider Spotify filed a protest with the European Commission, citing dissatisfaction with both the restriction and Apple’s 30% fee, prompting the EU to take a closer look.

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.’

Spotify is the largest music streaming app in the world

Apple claims that “Spotify has the largest music streaming app in the world and has met with the EC [European Commission] more than 65 times during this investigation.” Previously, Spotify claimed that the EU restrictions helped Apple’s rival music streaming service — Apple Music.

Apple’s protracted legal spat with Fortnite developer Epic Games led to the introduction of US fees in the first place. The largest developers pay 30% to utilize this method, whereas smaller developers charge 15% or less, and 85% of developers pay nothing at all.

Apple pointed out, “The primary advocate for this decision, and the biggest beneficiary, is Spotify, a company based in Stockholm, Sweden.

Featured Image Credit: Sami Abdullah; Pexels

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Deanna was an editor at ReadWrite until early 2024. Previously she worked as the Editor in Chief for Startup Grind, Editor in Chief for Calendar, editor at Entrepreneur media, and has over 20+ years of experience in content management and content development.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.