Apple’s antitrust legal actions in Europe may cost them $2 billion in fines

There’s a big problem about to hit the second most valuable company in the world; their first-ever fine from the EU due to antitrust issues, which amount to almost $2 billion. Although the company is challenging the fine, it's going to be a long journey until it is resolved. 

The outrageous fine comes after Swedish music company, Spotify, filed a complaint against Apple for alerting its customers to make use of other payment options outside its App Store. 

A major component of the lawsuits suggests that Spotify wants to boycott Apple’s 30 percent App Store fees. 

Apple’s allegations 

According to EU’s Antitrust chief, Margrethe Vestager, “For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” but “they did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem.”

She also added that “Millions of European music streaming users were left in the dark about all available options.” She further added that “Apple’s anti-steering  rules also made consumers pay more for such services because of the high charge fees imposed on developers, which is then passed on to consumers.” 

It also added that Apple’s restrictions constituted unfair trading conditions. The commission alongside Apple’s rival, Spotify poses a novel argument that there’s an unfair advantage in the market if Apple continues to restrict other apps. 

In a counter statement by Apple, “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.” 

The outcome of this fine seems to favor mostly Spotify, a digital streaming service best in Stockholm, Sweden. Needless to say, Spotify is the largest music streaming app in the world and is willing to drag this case to prevent other stores from unfair trade. 

It is clear the fine is big but Apple seems to have the cash to handle it without any major cash impact, as suggested by IDC’s company analyst, Ryan Reith. 

Apple said that it would appeal the decision. However, the outcome of the appeal is likely to take several years at the ruling at the Luxembourg-based General Court. Until then, Apple will have to comply with the fine.