Why Apple is upset with this huge fine from Europe

The European Commission has announced its decision in an anti-trust proceeding targeting Apple and music streaming in particular. Exceeding estimates, a record fine of 1.8 billion euros was imposed on the Californian firm.

There is no longer a relationship between Apple and the European Union. While the iPhone is on the brink of complying with European regulation, and it could cause banks to lose support for Apple Pay, this is the result of another hot European issue that has just come to light.

The European Commission has just issued its decision in an anti-trust case targeting Apple Music. A fine of 1.8 billion euros is being discussed. for abusing its dominant position in the market for the distribution of music streaming applications to iPhone and iPad users (‘iOS users’) through its App Store

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Why such a penalty?

More specifically, the Commission noted “ Apple imposed restrictions on app developers, preventing them from informing iOS users that other, cheaper music subscription services were available outside of the app. ” We are talking about the impossibility for app publishers like Spotify that a cheaper version of the subscription is available from the web version of the service, without Apple’s commission.

In fact, according to the Commission, Apple’s policy for nearly 10 years has allowed users to “ Pay significantly higher prices for music streaming subscriptions ».

The amount still seems high, but to justify it, the Commission suggests that it depends on the duration and severity of the infringement itself, as well as on the turnover and market capitalization of Apple (this is the most valuable company in the world).

Apple’s response

Apparently, Apple issued a particularly harsh press release following this decision. According to the brand, “ The decision was taken despite the Commission failing to find credible evidence of harm to consumers and ignoring the realities of a thriving, competitive and growing market. “

Apple also notes that Spotify represents 56% of the music streaming market in Europe. The iPhone App Store was a success thanks in particular to Apple and its terms. Above all, Apple reminds that Spotify does not pay commission today. Quite simply because the service favors subscription from its web platform. Among the benefits Spotify will gain from the iOS platform, Apple goes so far as to highlight the application’s ability to connect via Bluetooth.

Today, behind every app is a wildly successful business or a budding entrepreneur chasing a dream. Every day, teams at Apple strive to bring this dream to life.

Apple’s conclusion is self-evident. The firm naturally announces that it will appeal the European Commission’s decision. She recalls in passing that she estimates that it employs more than 2.5 million people in Europe. The employment argument is the argument most often used by large companies in their interactions with the political world.

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