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Apple Facing EU Fine for Hindering Streaming Music Competition

Video Credit: Wibbitz Top Stories - Duration: 01:30s - Published
Apple Facing EU Fine for Hindering Streaming Music Competition

Apple Facing EU Fine for Hindering Streaming Music Competition

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


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