Brussels, 4 March 2024 (dpa/MIA) - The European Commission has fined Apple €1.8 billion ($2 billion) for unfair competitive practices involving its music streaming service, Apple Music, following a complaint by Spotify.

Apple device users in the European Union "were not able to make a free choice as to where, how and at what prices to buy music streaming subscriptions," EU competition chief Margarethe Vestager said in a press conference on Monday.

The fine relates to Apple's practice of charging companies a 30% fee for sales made through apps running on Apple's iOS operating system for iPhones and iPads.

Companies that want to avoid the fee - and in turn offer lower prices - have to handle sales outside the app.

But Apple also forbids them from using the iOS app to inform users about prices or to provide a link to a sign-up page, the commission said. The commission calls these policies "anti-steering" measures.

For example, Spotify sells subscriptions through its website, but not through the Spotify app for devices running Apple's iOS operating system.

Users can sign up to Apple's own music streaming service, Apple Music, through the "Music" app that comes with iOS.

"The commission found that Apple applied restrictions on app developers preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app," a commission press release said. "This is illegal under EU antitrust rules."

The commission is ordering Apple to stop such "anti-steering" measures. "From now on Apple will have to allow music-streaming developers to communicate freely with their own users," including within iOS apps, Vestager said.

However, the commission's decision does not mean Apple would have to stop charging a 30% commission on in-app sales.

The fee only applies to paid services that are provided through an iOS app, such as music and video streaming.

For example, purchases of physical goods through Amazon's iOS app are not subject to the fee.

In a written statement sent to dpa, Apple said Spotify had a 56% share of the market for music streaming services in Europe, compared to Amazon's 20% and Apple's 11%. It argues that Spotify doesn't pay any money to Apple and has become the market leader in part thanks to Apple devices and software.

But the commission's press release said Apple is abusing "its dominant position on the market for the distribution of music streaming apps to iPhone and iPad users (‘iOS users') through its App Store."

dpa has contacted Spotify for comment.

Photo: MIA archive/EbS