Apple Inc., a multinational technology company, is gearing to dispute the €1.8 billion ($2.2 billion) fine imposed by the European Union’s authorities. The penalty aims to counteract Apple’s alleged restriction of fair competition in the music streaming industry vis-à-vis other companies such as Spotify.
Apple’s Appeal
The tech giant has filed a lawsuit with the European Court in Luxembourg, aiming to repeal the decision taken by the European Commission in March, as reported by Bloomberg based on their sources. Along with the penalty, the Commission has instructed Apple to lift restrictions for music streaming apps concerning notifications about more profitable payment methods outside the App Store.
Underlying Issues
The investigation traces back to a complaint filed five years ago by Swedish company Spotify, alleging that Apple’s App Store commission compelled it to raise the cost of monthly subscriptions. The European Commission has confirmed its readiness to defend its rulings in court. Although Apple declined to make new comments, it directed attention to its previous statement asserting that European regulators failed to provide credible evidence of consumer harm.
Tech Regulation in the EU
Margrethe Vestager, the European Commissioner for Competition, has initiated an endeavior to limit U.S. tech giants’ dominance. Through this effort, tech conglomerates face penalties and other regulatory measures. The recently activated “Digital Markets Act” (DMA) compelled Apple to reassess operating mechanisms for iOS, Safari, and the App Store.
