Apple fined €1.8 billion for unfair charges on music streaming services

Apple faces a coordinated class action lawsuit across Belgium, Italy, Spain, and Portugal, led by Euroconsumers, a Pan-European consumer group. 

The lawsuit seeks to recover €62 million for over 500,000 affected consumers who paid inflated prices for non-Apple music streaming services due to Apple’s App Store practices.

The European Commission fines Apple over €1.8 billion over abusive App Store rules

In March, the European Commission fined Apple €1.8 billion for imposing unfair fees that impacted competitors like Spotify, YouTube Music, and SoundCloud. 

The Commission found that Apple imposed “anti-steering provisions,” which prevented developers from informing iOS users about cheaper alternatives outside the App Store. 

This practice, illegal under EU antitrust rules, has been ongoing for nearly a decade and impacted competitors like Spotify and SoundCloud.

Margrethe Vestager, Executive Vice-President in charge of competition policy, stated;

“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store. They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem. This is illegal under EU antitrust rules, so today we have fined Apple over €1.8 billion.”

Apple users have paid up to 30 per cent more for non-Apple music subscriptions

Since 2013, iPhone and iPad users have paid up to 30 per cent more for non-Apple music subscriptions through the App Store. For instance, Spotify increased its price from €9.99 to €12.99 per month for iOS users to cover Apple’s commission fees.

Euroconsumers claims users who paid these inflated fees through Apple’s in-app payment system may be eligible to receive around €3 for each month they paid. 

Els Bruggeman, Head of Policy and Enforcement at Euroconsumers, stated, “Now that the European Commission has condemned and fined Apple for this behaviour, it’s time for Apple to make things right for consumers. This class action is about giving power back to people, making sure Apple is held accountable for the harm caused and standing up for a fair digital market.”

Apple plans to appeal the European Commission’s class action for unfair charges

Apple plans to appeal the European Commission’s €1.8 billion fine, asserting that its practices have helped markets thrive. 

The European Commission’s investigation into Apple’s anti-competitive practices was sparked by a 2019 complaint filed by Spotify.

This lawsuit highlights growing regulatory pressure on Big Tech companies like Apple to ensure fair market conditions for consumers and competitors in Europe.

Keep following for any updates on this developing story.