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EU Imposes $2 Billion Fine on Apple for App Store Antitrust Violations

The fine marks a significant move in Europe's ongoing efforts to regulate big tech, with Apple accused of using its App Store to limit competition in the music streaming market.

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The Apple logo is illuminated at a store in the city center of Munich, Germany, Dec. 16, 2020. European Union fines Apple nearly $2 billion for unfairly favoring its own music streaming service over rivals. (AP Photo/Matthias Schrader, File)
Spotify, Apple Music on smart phone screen.
Spotify has been one of the most vocal critics of Apple's changes to comply with the EU's new law, the Digital Markets Act

Overview

  • The European Commission fined Apple $2 billion for using its App Store to stifle competition among music streaming services, following a five-year investigation initiated by Spotify.
  • The fine is part of Europe's broader strategy to enforce stricter regulations on tech giants, leveraging the new Digital Markets Act (DMA) to ensure fair competition.
  • Apple plans to appeal the decision, arguing that the facts do not support the European Commission's ruling and accusing Spotify of seeking free access to Apple's tools.
  • The DMA, which comes into effect on March 6, allows for quicker and more efficient regulation of tech companies, with fines up to 10% of a company's turnover for violating its 22 rules.
  • The case highlights a shift in regulatory philosophy in Europe towards ensuring fairness in the digital market, moving away from the Chicago School's consumer welfare doctrine.