The European Commission fined Apple 1.84 billion euros for hindering competition from music streaming rivals through App Store restrictions.
This penalty, the first of its kind for Apple, was due to unfair trading conditions.
Apple plans to appeal the decision, which includes a basic fine of 40 million euros and a deterrent sum of 1.8 billion euros.
“The primary advocate for this decision — and the biggest beneficiary — is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation,” Apple stated.
“Millions of European music streaming users were left in the dark about all available options,” European Competition Commissioner Margarethe Vestager said.
“And Apple’s anti-steering rules also made consumers pay more for such services because of the high commission fee imposed on developers and passed on to consumers,” she said.
Despite criticism from Apple, the ruling aims to address consumer harm and promote competition in the market.
“And while we are pleased that this case delivers some justice, it does not solve Apple’s bad behaviour towards developers beyond music streaming in other markets around the world,” the company said.
“I believe this is another step in the on-going process of breaking down some of the walled gardens that Apple has created around its ecosystem,” analyst Ryan Reith said.
Apple must comply with the EU order while the case moves to the General Court for further review.
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