Apple fined for impeding competition in the music streaming market

The European Union has imposed a $2 billion antitrust fine on Apple for unlawfully favoring its music streaming service by preventing competitors from offering cheaper subscription options.

The American tech giant, Apple, was hit with its first antitrust fine by the European Union on Monday for illegally favoring its own music streaming service by preventing rivals like Spotify from telling users about alternative ways to pay for less expensive subscriptions than through iPhone apps. The fine totaled over $2 billion.

The European Commission accused Apple of silencing consumers of streaming services regarding payment choices on their websites. The European Commission is responsible for implementing antitrust laws on behalf of the 27 member nations of the EU. Because of this, customers could avoid paying the 30% cost that comes with utilizing apps downloaded through the iOS App Store.

Apple, appealing the ruling, acted this way for ten years, costing millions of users two to three euros more monthly than they would have had to pay for its music streaming service.

It results from a sour, multi-year battle between Spotify and Apple over dominance in music streaming. The judgment was made the same week that new regulations aimed at stopping tech companies from controlling digital markets went into force.

According to the commission, Apple's fine is so high because it includes an additional lump sum to discourage it from committing similar offenses in the future or to discourage other tech companies from doing the same.