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Apple faces a $2 bn (Sh287 billion) fine from the EU for violating competition laws related to music streaming.

The European Commission found that Apple restricted streaming services from informing users about payment options outside its app store.

Competition Commissioner Margrethe Vestager accused Apple of abusing its dominant market position for a decade and ordered the removal of all restrictions.

 

Apple intends to appeal, arguing that there is no evidence of consumer harm and that the market is thriving and competitive.

The decision was prompted by a complaint from Spotify, which objected to the restrictions and Apple's 30% fee.

Vestager stated that Apple's actions were "illegal under EU antitrust rules" as they limited "developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem."

 

Spotify praised the fine, emphasizing its message that no company, even a monopoly like Apple, should wield power abusively.

Apple countered that Spotify pays no commission to Apple, as it sells subscriptions on its website, not the app store.

Spotify contended that the restrictions favoured Apple Music, its rival streaming service.

Apple announced plans to allow EU customers to download apps outside its app store in January, coinciding with the impending introduction of the Digital Markets Act (DMA).

The DMA aims to enhance competition in the tech sector and challenge the dominance of companies like Apple and Google.

Tech companies have until this week to comply with DMA requirements, with fines of up to 10% of annual turnover for non-compliance.

Spotify, along with 33 other companies, recently criticized Apple's "lack of compliance" with the DMA, arguing that its new terms disregard the law's spirit and letter.