Apple hit with $2 bln EU fine in Spotify case

Watch Apple hit with $2 bln EU fine in Spotify case - Guardian Nigeria on Dailymotion

Transcript

00:00 "Today the Commission has fined Apple 1.84 billion euros for abusing its dominant position

00:09 on the market for the distribution of music streaming apps."

00:14 Apple was hit with a $2 billion EU fine on Monday, its first antitrust penalty.

00:20 It was for preventing Spotify and other music streaming services from informing users of

00:25 payment options outside its app store.

00:28 The European Commission's decision was triggered by a 2019 complaint by Sweden's Spotify over

00:33 both this restriction and Apple's 30% app store fees.

00:38 The EU regulator said Apple's restrictions constituted unfair trading conditions, a relatively

00:43 novel argument in an antitrust case.

00:46 It comprised a basic element of 40 million euros, described by European Competition Commissioner

00:51 Margareta Vestager as a "parking ticket" for the US giant, plus an additional lump

00:57 sum of 1.8 billion euros as a deterrent.

01:01 The antitrust chief said this was the first time the Commission had added a deterrent

01:05 separate lump sum on top of an antitrust fine.

01:08 "For a decade Apple has restricted music streaming app developers from informing their consumers

01:17 about cheaper options available outside of the app.

01:22 Apple has done so by contractually imposing anti-steering rules on music streaming app

01:28 developers."

01:30 Vestager ordered Apple to remove these anti-steering provisions and to refrain from similar practices

01:35 in the future.

01:36 Apple criticised the EU decision, saying in a statement, "The decision was reached despite

01:40 the Commission's failure to uncover any credible evidence of consumer harm and ignores the

01:45 realities of a market that is thriving, competitive and growing fast."

01:50 It also said it would challenge the decision in court.

01:53 A ruling at the Luxembourg-based General Court, Europe's second highest, is likely to take

01:58 several years.

01:59 Until then, Apple will have to pay the fine and comply with the EU order.

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