Apple Facing EU , Fine for Hindering , Streaming Music Competition.
On March 4, the European Union filed its first antitrust
penalty aimed at Apple, fining the tech giant almost
$2 billion for unfairly favoring its own music service.
On March 4, the European Union filed its first antitrust
penalty aimed at Apple, fining the tech giant almost
$2 billion for unfairly favoring its own music service.
According to regulators, Apple forbid streaming
music rivals from informing users that cheaper
subscription options available on their websites.
According to regulators, Apple forbid streaming
music rivals from informing users that cheaper
subscription options available on their websites.
Those options would allow users to
avoid a 30% fee charged when people
pay through the iOS App Store app. .
This is illegal. And it has
impacted millions of European
consumers who were not able to
make a free choice as to where,
how and at what price to buy
music streaming subscriptions, Margrethe Vestager, EU Commission’s
competition commissioner, via NPR.
Margrethe Vestager, the EU’s competition
commissioner, said the practice has resulted in , “millions of people who have paid two, three euros
more per month for their music streaming service
than they would otherwise have had to pay.”.
NPR reports that the EU Commission
decision comes the same week as new
rules take effect aimed at preventing tech
companies from cornering digital markets.
Apple said the it would appeal
the commission’s decision to
levy a fine against the company. .
The decision was reached despite
the Commission’s failure to uncover
any credible evidence of consumer
harm, and ignores the realities
of a market that is thriving,
competitive, and growing fast, Apple statement, via NPR.
Apple added that the EU decision benefits Spotify,
which is based in Sweden and currently holds
a 56% share of Europe’s music streaming market.
Apple added that the EU decision benefits Spotify,
which is based in Sweden and currently holds
a 56% share of Europe’s music streaming market.
Ironically, in the name of
competition, today’s decision
just cements the dominant
position of a successful European
company that is the digital
music market’s runaway leader, Apple statement, via NPR
Credit DailyMotion
