Apple is ordered by the EU to pay a huge fine of 294 billion yen and change App Store rules for violating antitrust laws



Apple's anti-steering provisions, which prohibit App Store app developers from informing users of cheaper alternative services available outside of their apps, violate EU antitrust rules. The European Commission has announced that it will impose a fine of more than approximately 1.8 billion euros (approximately 294 billion yen) on Apple.

Commission fines Apple

https://ec.europa.eu/commission/presscorner/detail/en/ip_24_1161

The App Store, Spotify, and Europe's thriving digital music market - Apple
https://www.apple.com/newsroom/2024/03/the-app-store-spotify-and-europes-thriving-digital-music-market/

Spotify wins as EU orders Apple to pay $2B and change App Store rules | Ars Technica
https://arstechnica.com/tech-policy/2024/03/apple-to-pay-2b-after-eu-finds-app-store-abusive-siding-with-spotify/

In March 2019, Spotify filed a complaint with the European Commission alleging that ``Apple imposes unreasonable restrictions on competitors on the App Store.'' During a review of this issue, suspicions emerged that Apple had prohibited app developers from proposing cheaper alternative services, and authorities were investigating.

Apple could be fined the equivalent of 10% of annual revenue by the EU for violating antitrust laws in its dispute with Spotify over the App Store - GIGAZINE



The European Commission announced on March 4, 2024 that ``Apple prohibits music streaming app developers from notifying users that there are cheaper services available outside of the app.'' We reported the results of our investigation.

According to the European Commission, Apple prohibited app developers from doing the following:
- Notify iOS users of charges for subscription services available outside of the app.
・Notify iOS users of the difference between the subscription price on the App Store and the price elsewhere.
・Create a link in the app to the app developer's website where they can subscribe to alternative services, and contact new users by e-mail or otherwise to inform them about alternative services.

The European Commission further found that these 'anti-steering provisions' amounted to unfair trade in violation of the Treaty on the Functioning of the European Union (TFEU), undermining Apple's global profits and need for restraint. In view of this, we concluded that it was appropriate to impose fines totaling over 1.8 billion euros.



This is the first time the European Commission has fined Apple, and the amount is four times higher than originally expected.

In response to this decision, Apple wrote on its official blog, ``Despite the European Commission's failure to uncover any reliable evidence of consumer harm, the App Store constitutes a barrier to competition in the digital music market.'' 'This decision ignores the reality of a vibrant, competitive and rapidly growing market,' he said, adding that he intends to appeal.

Meanwhile, Spotify said, ``The European Commission has clearly concluded that Apple's actions to restrict communications to consumers are unlawful.'' 'This has important implications,' he said, welcoming the European Commission's decision. Spotify also announced that it would continue to fight Apple in areas outside the EU, saying, ``This does not resolve Apple's bad behavior.''



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