EU: €1.8 billion fine on Apple

The European Commission has imposed a €1.8 billion fine on Apple for abusing its dominant market position through its App Store by restricting app developers from informing users about alternative and cheaper music subscription services. This decision is based on Apple’s practice of requiring the sales of subscriptions within apps downloaded from its App Store to be processed through Apple’s payment platform, from which it retains a 15 to 30 percent fee.

Apple argued against the decision, claiming there was no substantial evidence of consumer harm and highlighted the role of the App Store in Spotify’s success. In response to EU regulations, Apple introduced alternative App Store payment options, reducing its commission to 17 percent for digital items and subscriptions and 10 percent for long-term subscriptions, plus an additional three percent if Apple’s payment system is used.

This move is part of a broader EU effort to deter tech giants like Apple and ensure fair competition, alongside imposing significant fines on other technology platforms like Google.