Apple has been hit with a massive $1.9 billion fine by the European Commission for imposing barriers in its app store that restricted music apps. The fine comes as a validation of concerns raised by Spotify, highlighting Apple’s role as a gatekeeper in the market. The EU found that Apple had implemented restrictions on app developers, preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app. These “anti-steering provisions” were deemed illegal under EU antitrust rules.
Apple vehemently denied any anticompetitive behavior and argued that the EU lacked evidence of harm to companies using the app store. However, with the EU’s Digital Markets Act set to take effect soon, it aims to limit the power of “gatekeeper platforms” like Apple and Google in restraining developers from promoting off-store alternative shops for in-app purchases.
In response, Apple criticized Spotify, noting that the streaming giant had gained a commanding lead in the EU music market without paying anything to Apple. Spotify had numerous meetings with the EU prior to the fine being issued. CEO Daniel Ek of Spotify welcomed the ruling, considering it a good first step but emphasizing that there is still more work to be done.
Tim Sweeney, CEO of Epic Games, also weighed in on the issue, highlighting the ongoing legal battle between Epic and Apple in the United States. Sweeney acknowledged the EU’s finding of lawbreaking by Apple and mentioned that a similar issue is being addressed in the U.S. District Court case of Epic v Apple. The court has ordered Apple not to restrict developers from informing users about lower prices at alternative stores.
The investigation into Apple’s practices by the EU began in 2020, and the recent fine is a significant development in this ongoing process.
The implications of this fine for the gaming industry are not explicitly outlined in the given text. However, it hints at the broader impact on digital marketplaces and how gatekeeper platforms like Apple may face increased scrutiny and regulation. The gaming industry heavily relies on app stores for distribution and monetization, making any changes in policies or restrictions by platforms like Apple significant for game developers and publishers.
Overall, this article highlights the clash between Apple and regulatory bodies like the EU, as well as the ongoing legal battles with companies such as Spotify and Epic Games. The outcome of these disputes will shape the future of app stores and their impact on various industries, including gaming.