EU fines Apple €1.8bn for unfair competition in music streaming

The European Commission (EC) has fined Apple €1.8 billion ($2 billion) for unfair competitive practices involving its music streaming service, Apple Music, following a complaint by Spotify.

Apple device users in the European Union “were not able to make a free choice as to where, how and at what prices to buy music streaming subscriptions,” EU competition chief Margarethe Vestager said at a news conference.

The fine relates to Apple’s practice of charging companies a 30 per cent fee for sales made through apps running on Apple’s iOS operating system for iPhones and iPads.

Companies that wanted to avoid the fee and in turn offer lower prices had to handle sales outside the app.

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But Apple also forbade them from using the iOS app to inform users about prices or to provide a link to a sign-up page, the commission said.

“For example, Spotify sells subscriptions through its website, but not through the Spotify app for devices running Apple’s iOS operating system.

“Users can sign up to Apple’s own music streaming service, Apple Music, through the “Music” app that comes with iOS.

“The commission found that Apple applied restrictions on app developers preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app.

“This is illegal under EU antitrust rules.

“From now on Apple would have to allow music streaming developers to communicate freely with their own users, including within iOS apps,” the  EU competition chief said.

The Star