Commission / Heavy fine of 1.8 billion euros on Apple

Amount fine The Commission imposed 1.8 billion euros on Apple for violation of anti-monopoly legislation in music market from the App Store.

The Vice-President of the Commission responsible for competition matters, Margaret Vestagerstated: “For a decade, Apple did abuse of dominant position of the market to distribute music streaming applications through the App Store.

They did restricting developers from informing consumers about alternative, cheaper music services available outside the Apple ecosystem. This is illegal under EU antitrust rules, so today we have fined Apple more than €1.8 billion.”

The European Commission fined Apple more than 1.8 billion euros for abuse of its dominant market position in the distribution of music streaming applications to iPhone and iPad users (“iOS users”) through its App Store.

In particular, the Commission found that Apple imposed restrictions on app developers, preventing them from updating iOS users about alternative and cheaper music subscription services available outside of the application (“anti-address provisions”). This is illegal under EU antitrust rules.

In determining the amount of the fine, the Commission took into account the duration and seriousness of the offence, as well as Apple’s total turnover and market capitalization. It also took into account that Apple submitted incorrect information as part of the administrative process.

In addition, the Commission decided to add to the basic amount of the fine one an additional lump sum of 1.8 billion euros to ensure that the total fine imposed on Apple is sufficiently deterrent.

The Commission concluded that the total amount of the fine of more than €1.8 billion is commensurate with Apple’s global revenue and is necessary to achieve deterrence.

It is noted that in June 2020, the Commission initiated formal proceedings on Apple’s rules for app developers regarding distribution of applications through the App Store.

Under EU antitrust rules, dominant companies have a particular responsibility not to abuse their strong market position by restricting competition, either in the market in which they hold a dominant position or in separate markets. The fines imposed on companies that violate them EU antitrust rules are paid in the general EU budget.

This revenue is not earmarked for specific expenditure, but member states’ contributions to the EU budget for the following year are reduced accordingly. Therefore, fines help fund the EU and reduce the burden on taxpayers.