Mumbai, March 4: The European Union has fined Apple nearly $2 billion for unfair competitive practices over its music streaming services. Apple reportedly used its app store to thwart competition and banned app developers from fully informing iOS users about alternative and affordable music subscription services outside the app. The reports have mentioned that such action is considered illegal under the EU antitrust rules. 

According to a report by The New York Times, Apple was fined around €1.8 million (around $1.95 billion) by the regulators in the European Union for "thwarting competition among music streaming rivals". As per the report, Margrethe Vestager, EU executive VP looking into the competition policy, said that the Apple had abused its dominant position in the market for a decade to distribute music streaming apps through the Apple App Store. Founder and CEO Anupam Mittal Fights Against Google’s New Play Store Policies, Says ‘We Have Strong and Proactive Government That Will Not Fall for Big Tech’s Lies’. 

The EU Commission added that Apple charged much higher prices for its music streaming subscriptions for a decade of users. According to the report by The New York Times, Apple needs apps to use its in-app payment services for sales, and it charges as high as 30% commission on each transaction. For the developers, this set amount is much higher. 

According to the report, the Netherlands and South Korea passed laws forcing Apple to allow alternative payment services. Still, the tech giant reportedly disregarded the regulator's challenges by charging a 27% commission. The report said that the regulators in these countries have been contesting this solution. The report also highlighted that the tech giant accused Spotify of being "monopolistic" because it had over 50% of users in the EU. Samsung Electronics’s Harman Seizes 54 Fake JBL Products From Multiple Shops in Delhi.

The report said such a penalty reinforces the EU's aggressive position in the tech sector. The report also mentions that the antitrust regulators have investigated and fined Google, Amazon, Meta and Microsoft. On the other hand, Apple said to appeal to the ruling and further added that the company supports the European Commission, but "the facts simply don't support this decision".

(The above story first appeared on LatestLY on Mar 04, 2024 07:01 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website