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EU Commission fines Apple over €1.8 billion over abusive App store rules for music streaming providers (ec.europa.eu)

submitted 9 months ago* (last edited 9 months ago) by [email protected] to c/[email protected]

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The European Commission has fined Apple over €1.8 billion for abusing its dominant position on the market for the distribution of music streaming apps to iPhone and iPad users (‘iOS users') through its App Store. In particular, the Commission found that Apple applied restrictions on app developers preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app (‘anti-steering provisions'). This is illegal under EU antitrust rules.

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[–] [email protected] 57 points 9 months ago (3 children)

For a middle class person, that’s equivalent of being sued for €1000, with a good chance of getting away with €100 even when losing. When will fines for big multinationals ever be adequate?

[–] [email protected] 36 points 9 months ago

According to this, the fine includes a punitive damage:

Vestager said that the lump sum of €1.8 billion had been added as a deterrent since the basic amount of the fine, which she compared to a "parking ticket," would have been quite small.

The total fine of €1.84 billion amounts to 0.5% of Apple's worldwide turnover, according to Vestager.

Still not enough in my opinion, but hopefully if this sticks, future damage awards will be even higher. In any case, there will be a lot more fines and regulations coming down on Apple into the future (thanks in large part to the DMA), so even though this is just a single instance, they will hopefully add up pretty significantly in the coming years.

[–] [email protected] 35 points 9 months ago (1 children)

$1.8B is quite a chunk, and the EU is not shy about levying further fines if the behaviour continues.

[–] [email protected] 5 points 9 months ago (2 children)

It's less than 0.5% of their annual global revenue. It's nothing for a company like Apple.

[–] [email protected] 8 points 9 months ago

It's not company threatening, that's for sure. But that's big enough to show up on their annual report, and pull their profit margin down a point or two. That is very much enough to get their attention.

[–] [email protected] 2 points 9 months ago

Based on Statista, Apple profit from EU was 36B in 2023. The fine in this case amounts to 5% of their profit from the region. This is something that will impact the company's decisions.

Or they will fund more infrastructure development in the EU. It's still just March.

[–] [email protected] 27 points 9 months ago

While I do agree that the fine could be higher, this is not like a US regulatory lawsuit. In the EU, fines have to be paid immediately, and Apple can appeal if it wants and may receive some of the money it paid back. Apple doesn't get to drag it out, and there are no out of court settlements that usually get the fine amount down.