According to news agency Associated Press, the US tech giant Apple Inc. was fined nearly $2 billion by the European Union (EU) on Monday for using the App Store to stifle competition.
The European Commission was mentioned in the report as saying that Apple has prohibited app developers from "fully informing iOS users about alternative and cheaper music subscription services outside of the app".
That's prohibited by EU antitrust regulations. The report went on to say that Apple operated in this way for nearly ten years, during which time the commission said that many customers paid "significantly higher prices for music streaming subscriptions."
Five years ago, a complaint by Swedish streaming provider Spotify sparked a lengthy inquiry that resulted in the EU fining Apple Inc. the most recent $1.8 billion fine.
The EU has recently taken the lead in international efforts to crack down on large digital giants. These efforts have included many multibillion-dollar fines for Google and accusations against Meta of manipulating the online classified ad market.
In addition, the EU launched a different antitrust probe into Apple's mobile payments platform.
The commission's initial investigation focused on two issues. One was the iPhone maker's policy of making in-house payment processor, which takes a 30 percent commission on all subscriptions, mandatory for app developers selling digital content.
Later on, though, the EU abandoned that in favor of concentrating on Apple's prohibition against app developers informing their users of less expensive alternatives to paying for subscriptions that don't require using an app.
According to the EU's investigation, Apple has prohibited streaming services from informing users about the cost of subscription packages that aren't within their apps. This includes providing links within the apps to pay for alternative subscriptions or informing customers via emails about various pricing possibilities.
The most recent instance of Apple Inc. being fined coincides with the week when new EU regulations intended to stop tech companies from controlling digital markets are scheduled to take effect.
The Digital Markets Act, which goes into effect on Thursday, places a series of dos and don'ts on "gatekeeper" businesses, such as Apple, Meta, Alphabet, the parent company of Google, and ByteDance, the parent company of TikTok, with the potential for significant fines.
In the meanwhile, Apple disclosed its compliance plans, which include letting developers provide alternate payment methods and permitting iPhone customers in Europe to utilize app shops other than its own.
In order to address the commission's separate antitrust probe investigating Apple's mobile payments service, the business has pledged to allow competitors to access its tap-and-go mobile payment system.
0 Comments