The European Commission has imposed a fine of over €1.8 bn on tech giant Apple for alleged antitrust violations related to its App Store practices. The Commission found that Apple abused its dominant position in the market for distributing music streaming apps to iPhone and iPad users within the European Economic Area (EEA).
As the sole provider of the App Store in the EEA, Apple exercises control over every aspect of the iOS user experience and sets terms and conditions for developers seeking to distribute their apps on the platform. The Commission's investigation revealed that Apple's anti-steering provisions prohibited app developers from:
- Informing iOS users about prices of subscription offers available outside of the app.
- Providing information about price differences between in-app subscriptions sold through Apple's mechanism and those available elsewhere.
- Including links in their apps leading iOS users to the developer's website where alternative subscriptions could be purchased.
- Contacting newly acquired users to inform them about alternative pricing options.
The Commission concluded that these provisions created unfair trading conditions and negatively impacted iOS users' ability to make informed decisions about purchasing music streaming subscriptions. Additionally, Apple's actions, which persisted for almost a decade, may have led many iOS users to pay higher prices for subscriptions due to the commission fees imposed by Apple on developers.
In addition to the substantial fine, the Commission has ordered Apple to remove the anti-steering provisions and refrain from repeating the infringement in the future. The fine was calculated taking into account the duration and gravity of the infringement, as well as Apple's total turnover and market capitalization.
The Commission also highlighted the necessity of deterrence in imposing the fine, emphasizing the importance of ensuring that similar antitrust violations are not repeated by Apple or other companies of similar size and resources.
Background
The investigation into Apple's App Store practices was initiated in June 2020, with formal proceedings opened by the Commission. The fine imposed on Apple will be paid into the general EU budget and may be reimbursed to the UK, as the case was initiated before the end of the transition period.
Affected parties have the option to seek damages for anti-competitive behavior before national courts, with Commission decisions serving as binding proof of the infringement. The Antitrust Damages Directive aims to facilitate the process for victims of anti-competitive practices to obtain damages.
Earlier Daryo reported that Apple has chosen to cease development on its highly anticipated electric car project.
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