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THE European Union (EU) on Monday slapped tech giant Apple with over 1,8 billion euros (about US$1,95 billion) in fines for alleged antitrust violations.
The move stems from Apple’s alleged abuse of its dominant market position in distributing music streaming apps to iPhone and iPad users through its App Store, as stated in a European Commission statement.
Apple enforced restrictions on app developers, preventing them from informing iOS users about alternative and cheaper music subscription services available outside the App Store, a practice deemed illegal under EU antitrust regulations, the statement said.
The Commission’s investigation revealed that Apple’s conduct persisted for nearly a decade, potentially leading to higher prices for music streaming subscriptions for iOS users due to the high commission fees imposed on developers, which were then passed on to consumers.
In justifying the move, the Commission emphasised the need for deterrence, stating that “such lump sum fine was necessary … to deter Apple from repeating the present or a similar infringement, and to deter other companies of a similar size and with similar resources from committing the same or a similar infringement.”
In a statement responding to the Commission’s decision, Apple argued that EU failed to uncover any credible evidence of consumer harm and ignored the realities of a thriving, competitive, and fast-growing market.
“So while we respect the European Commission, the facts simply don’t support this decision. And as a result, Apple will appeal,” the company said. – Xinhua
Online Reporter