Friday, August 1, 2025
NewsWave
No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
Login
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
Login
No Result
View All Result
Login
NewsWave
No Result
View All Result
Home World USA

The EU fines Apple nearly $2 billion for hindering music streaming competition : NPR

4 March 2024
in USA
0
The EU fines Apple nearly  billion for hindering music streaming competition : NPR
Share on FacebookShare on Twitter
How does this make you feel?


EU Commission vice president Margrethe Vestager addresses the media about Apple Music streaming services at EU headquarters in Brussels on Monday.
Geert Vanden Wijngaert/AP
hide caption

toggle caption


Geert Vanden Wijngaert/AP

EU Commission vice president Margrethe Vestager addresses the media about Apple Music streaming services at EU headquarters in Brussels on Monday.


Geert Vanden Wijngaert/AP

LONDON — The European Union leveled its first antitrust penalty against Apple on Monday, fining the U.S. tech giant nearly $2 billion for unfairly favoring its own music streaming service by forbidding rivals like Spotify from telling users how they could pay for cheaper subscriptions outside of iPhone apps.

Apple muzzled streaming services from telling users about payment options available through their websites, which would avoid the 30% fee charged when people pay through apps downloaded with the iOS App Store, said the European Commission, the 27-nation bloc’s executive arm and top antitrust enforcer.

“This is illegal. And it has impacted millions of European consumers who were not able to make a free choice as to where, how and at what price to buy music streaming subscriptions,” Margrethe Vestager, the EU’s competition commissioner, said at a news conference in Brussels.

After 10 years of development, Apple abruptly cancels its electric car project

Apple — which contests the decision — behaved this way for a decade, resulting in “millions of people who have paid two, three euros more per month for their music streaming service than they would otherwise have had to pay,” she said.

It’s the culmination of a bitter, yearslong feud between Apple and Spotify over music streaming supremacy. A complaint from the Swedish streaming service five years ago triggered the investigation that led to the 1.8 billion-euro ($1.95 billion) fine.

The decision comes the same week new rules take effect to prevent tech giants from cornering digital markets.

The EU has led global efforts to crack down on Big Tech companies, including three fines for Google totaling more than 8 billion euros, charging Meta with distorting the online classified ad market and forcing Amazon to change its business practices.

FTC Chair Lina Khan on Antitrust in the age of Amazon

Apple’s fine is so high because it includes an extra lump sum to deter it from offending again or other tech companies from carrying out similar offenses, the commission said.

It’s not the only penalty that the tech giant could face: Apple is still trying to resolve a separate EU antitrust investigation into its mobile payments service by promising to open up its tap-and-go mobile payment system to rivals.

Apple hit back at the commission and Spotify, saying it would appeal Monday’s fine.

“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 company said in a statement.

It said Spotify stood to benefit from the EU’s move, asserting that the Swedish streaming giant met over 65 times with the commission during the investigation, holds a 56% share of Europe’s music streaming market and doesn’t pay Apple for using its App Store.

Chinese electric carmakers are taking on Europeans on their own turf — and succeeding

“Ironically, in the name of competition, today’s decision just cements the dominant position of a successful European company that is the digital music market’s runaway leader,” Apple said.

Spotify said it welcomed the EU fine, without addressing Apple’s accusations.

“This decision sends a powerful message — no company, not even a monopoly like Apple, can wield power abusively to control how other companies interact with their customers,” Spotify said in a blog post.

The commission’s investigation initially centered on two concerns. One was the iPhone maker’s practice of forcing app developers selling digital content to use its in-house payment system, which charges a 30% commission on all subscriptions.

Those fees have turned into a significant part of Apple’s service’s division, which generated $85 billion in revenue during the company’s last fiscal year ending in September.

Various legal and regulatory developments in the U.S as well as Europe that are threatening to undercut the Apple’s commissions from the App Store have been weighing on the company’s stock, which has fallen by 9% so far this year while the tech-driven Nasdaq composite index has gained 8%. Apple’s shares declined 2.5% in Monday’s trading in the U.S.

But the EU later pivoted its focus to concentrate on how Apple prevents app makers from telling their users about cheaper ways to pay for subscriptions that don’t involve going through an app.

The investigation found that Apple banned streaming services from telling users about how much subscription offers cost outside of their apps, putting links in their apps to pay for alternative subscriptions or even emailing users to tell them about different pricing options.

“As a result, millions of European music streaming users were left in the dark about all available options,” Vestager said, adding that the commission’s investigation found that just over 20% of consumers who would have signed up to Spotify’s premium service didn’t do so because of the restrictions.

The fine comes just before new EU rules are set to kick in that are aimed at preventing tech companies from dominating digital markets.

The Digital Markets Act, due to take effect Thursday, imposes a set of do’s and don’ts on “gatekeeper” companies including Apple, Meta, Google parent Alphabet, and TikTok parent ByteDance — under threat of hefty fines.

The DMA’s provisions are designed to prevent tech giants from the sort of behavior that’s at the heart of the Apple investigation. Apple has already revealed how it will comply, including allowing iPhone users in Europe to use app stores other than its own and enabling developers to offer alternative payment systems.

Vestager warned that the commission would be carefully scrutinizing how Apple follows the new rules.

“Apple will have to open its gates to its ecosystem to allow users to easily find the apps they want, pay for them in any way they want and use them on any device that they want,” she said.



Source link

🪄 Creating a simple explanation...

Tags: AppleBillioncompetitionfineshinderingmusicNPRStreaming
Previous Post

A woman wins $3.8 million verdict after SWAT team searches wrong home based on Find My iPhone app

Next Post

US Presidential Elections 2024, Joe Biden, Donald Trump, Nikki Haley: Super Tuesday, Big Day For Biden, Trump In US Election Race: 10 Points

Related Posts

Five things that are more expensive in Canada due to tariffs
USA

Five things that are more expensive in Canada due to tariffs

by My News Wave
1 August 2025
0

The US-Canada trade war has intensified as President Trump raised tariffs on Canadian imports from 25% to 35%, affecting key products like appliances, cars, and groceries, leading to rising prices for Canadians. Canada has implemented counter-tariffs on American goods, causing costs for certain items, including clothing and housing materials, to increase, impacting everyday consumers. Want More Context? 🔎

Read more
Wife of Marine veteran, mother of 2 young kids, released from ICE detention after 2 months
USA

Wife of Marine veteran, mother of 2 young kids, released from ICE detention after 2 months

by My News Wave
1 August 2025
0

Paola Clouatre, a 25-year-old Marine Corps veteran's wife and mother of two, was released from ICE custody after being detained during a routine immigration visit in May. She now wears an ankle monitor and must check in with ICE regularly as her family seeks to dismiss a deportation order issued due to her mother's past immigration issues. Want More Context? 🔎

Read more
Employers added 73,000 jobs in July, falling short of forecasts
USA

Employers added 73,000 jobs in July, falling short of forecasts

by My News Wave
1 August 2025
0

Employers in the U.S. added 73,000 jobs in July, falling short of the expected 115,000, while the unemployment rate rose to 4.2%. Analysts suggest that the slowdown in job growth may be linked to increased tariffs impacting the economy, indicating a potential economic downturn ahead. Want More Context? 🔎

Read more
Grand Canyon, Utah wildfires creating “fire clouds” that can form their own weather systems
USA

Grand Canyon, Utah wildfires creating “fire clouds” that can form their own weather systems

by My News Wave
1 August 2025
0

Two major wildfires are raging in the western U.S., with the Dragon Bravo Fire on the North Rim of the Grand Canyon being 9% contained and causing the destruction of the Grand Canyon Lodge, while another fire in Monroe, Utah, is 11% contained. Both fires are generating dangerous pyrocumulus clouds that create erratic weather, complicating firefighting efforts and leading to evacuations in affected areas. Want More Context? 🔎

Read more
Canadian wildfire smoke chokes Midwest as flood threat looms in Carolinas
USA

Canadian wildfire smoke chokes Midwest as flood threat looms in Carolinas

by My News Wave
1 August 2025
0

A significant rainfall of 1 to 4 inches along the I-95 corridor prompted flash flood warnings, with Burlington County, NJ, receiving nearly 6 inches. As flooding risks shift to the Carolinas and Dallas-Fort Worth, wildfire smoke from over 650 Canadian fires is impacting air quality in the Midwest, with extreme heat advisories in effect across six states from Louisiana to South Carolina. Want More Context? 🔎

Read more
Prosecutors seeking long prison term for Sean “Diddy” Combs and opposing bail
USA

Prosecutors seeking long prison term for Sean “Diddy” Combs and opposing bail

by My News Wave
1 August 2025
0

Sean "Diddy" Combs' Sentencing UpdateProsecutors now anticipate a prison sentence for Sean "Diddy" Combs, potentially exceeding the previously expected four-to-five years, following his conviction on prostitution-related charges. While Combs' lawyers argue for a shorter sentence of 21-to-27 months, prosecutors assert that he poses a danger to the community and should remain in jail pending sentencing on October 3. Want More Context? 🔎

Read more
NewsWave

News Summarized. Time Saved. Bite-sized news briefs for busy people. No fluff, just facts.

CATEGORIES

  • Africa
  • Asia Pacific
  • Australia
  • Business
  • Canada
  • Entertainment
  • Europe
  • India
  • Middle East
  • New Zealand
  • Sports
  • Technology
  • UK
  • USA
  • World

LATEST NEWS STORIES

  • Egypt’s Sisi reaffirms Cairo’s rejection of Palestinian displacement during talks with Dutch premier – Middle East Monitor
  • Canadian military won't restrict new handgun in aftermath of U.S. fatality
  • Five things that are more expensive in Canada due to tariffs
  • About Us
  • Disclaimer
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact Us

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In