The European Commission has fined Apple over €1.8 billion for abusing its dominant position on the market for the distribution of music streaming apps to iPhone and iPad users (‘iOS users') through its App Store. In particular, 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 (‘anti-steering provisions'). This is illegal under EU antitrust rules.
Even though the Commission has fined the company concerned, damages may be awarded by national courts without being reduced on account of the Commission fine.
So if/after Apple's appeal is declined, Spotify - the driving force of this EU investigation - can sue Apple for damages with additional cost to Apple.
For a middle class person, that’s equivalent of being sued for €1000, with a good chance of getting away with €100 even when losing. When will fines for big multinationals ever be adequate?
So doesn’t Spotify pay them the 100 dollars a year to be a developer? So Apple says they get nothing for from Spotify for developing the platform and tools, but they’re outright lying. And if the 100 isn’t enough increase the price.
Apple just seems like a crying baby in this letter.
In case anyone is wondering where the money is going: The EU budget. The EU doesn't really get to keep it though because membership fees will be lowered by that amount next year so the actual windfall goes to member state budgets.
Nice to see a reasonably sized fine. In the US it would be like 5 million and they'd spend 10 times that fighting it in court and still not affect their profits for the month.
Spotify should have handled their issues with the app store rules but just not making an IOS app. If the biggest music streaming service in the world didn't work with iPhones maybe Apple would have had to reconsider some things.