EU Fines Apple $2 Billion in Spotify Dispute

Brussels imposed a fine of 1.84 billion euros ($2 billion) on Apple today, marking the company’s first antitrust penalty in the European Union. The fine is due to Apple's prevention of the Spotify app and other music applications from informing users about different payment options outside the Apple Store.

The European Commission's decision follows a complaint filed by Swedish Spotify in 2019 regarding this practice and the 30% fees imposed by the Apple Store. Apple criticized the EU's decision, stating it would appeal against it. A ruling from the General Court in Luxembourg, which is the second highest court in Europe, is expected to take several years. In the meantime, Apple will have to pay the fine and comply with the EU's ruling.

In a statement, the company said, "The decision was made despite the Commission not revealing any reliable evidence of consumer harm and ignores the facts of market prosperity, competitiveness, and rapid growth."

EU Competition Commissioner Margrethe Vestager stated that Apple's rules have cost consumers more money for services due to high fees imposed on developers, which were passed on to consumers. Vestager directed Apple to remove barriers for users and refrain from similar actions in the future. Apple noted that Spotify does not pay it any commission because it sells its subscriptions on its website, not through the Apple App Store.

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