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The European Commission, the European Union's executive arm, made the announcement on Monday apple With an antitrust fine of more than €1.8 billion ($1.95 billion) for allegedly abusing its dominant market position to distribute music streaming apps.
This is the first antitrust fine Apple has imposed on Brussels, and is among the largest ever imposed by the European Union on a technology company.
The European Commission opened an investigation into Apple after a complaint from Spotify in 2019. The scope of the investigation was narrowed to focus on contractual restrictions Apple imposed on app developers that prevented them from informing iPhone and iPad users of alternative music subscription services at lower prices overseas. From the App Store.
The fine will exacerbate tensions between major technology companies and Brussels at a time when the European Union is increasing scrutiny of these companies.
Last year, the Commission classified Apple among other technology companies such as… Microsoft And dead They act as “gatekeepers” under a landmark regulation called the Digital Markets Act, which came into force broadly last year.
The term gatekeepers refers to large internet platforms that the EU believes restrict access to core platform services, such as online search, advertising, messaging and communications.
The Digital Markets Law aims to clamp down on anti-competitive practices by technology companies, and force them to open some of their services to other competitors. Small Internet companies and other companies have complained that they have been harmed by these companies' business practices.
These laws have already had an impact on Apple. The Cupertino, California-based giant announced plans this year to open its iPhones and iPads to alternative app stores other than its own. Developers have long complained about Apple's 30% fee on in-app purchases.
This is a breaking news story. Please check back for more information.
CNBC's Ryan Brown contributed to this article.
