Apple Faces Historic $2 Billion Penalty: EU's Game-Changing Move

EU penalty Apple $ 2 billion

In a shocking development that has shaken the tech industries, the European Union has fined “Apple” a whopping amount of $ 2 billion for irregularities or wrongdoings in its competition law.

In light of this event, the federation has declared to levy a penalty of $ 2 billion, this would mark the first-ever penalty imposed on Apple by the EU federation. The penalty imposed is on grounds of antitrust by averting its competitors like Spotify, by informing the iPhone users, that they could find much cheaper options to subscribe outside of Apple App stores.

The chief of the European Union (EU) “Margrethe Vestager” stated that Apple being in a dominant position in the industry has misused its position. Further, he said European customers have no choice but to decide when, where, or how, and at what price they could subscribe to a music streaming application. This illegality has impacted large masses of European customers.

Apple in Defence of the European Commission’s, EU executive cell stated that it had been reached notwithstanding its failure to provide credible evidence to its claims that it had harmed consumers. However, Apple also reminded the EU that it had neglected the thriving, competitive, and fast-paced market. Apple also stated that they compete in an equal playing ground or arena on their App Store.

The European Commission in response to Spotify’s complaint against Apple, officially opened an investigation into Apple in 2020, accusing its unethical advantage over its competitors.


Reports say that Apple collected 30% of the fees on Swedish music streamers and other content creators when the purchaser is done through the app store. While compared to Apple’s own in-house Apple music app it didn’t have to pay any fees. Further Spotify also stated that Apple refused to share Spotify’s offers and deals with its iPhone customers.

Spotify said that they are well aware that Apple is a larger company involved in selling their iPhone along with their operating system, and the only way to cater their app and other services is through Apple’s operating system.

In light of this matter, Apple announced changes to how it handles the app in the European Union. Now for the first time in history, Apple has decided to allow third-party app stores and also it has significantly cut down its app store fees.

These changes were revealed per the European Union’s guidelines which will come into force this month as a part of the Digital Marketers Act, an extensive set of competition guidelines for tech giants.

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