The European Union has fined Apple a record-breaking €1.1 billion after a yearslong investigation into the tech giant’s app store practices. The EU’s antitrust watchdog found that Apple had abused its dominant position in the market by imposing unfair restrictions on app developers.
The investigation, which began in 2019, focused on Apple’s App Store and the rules it imposes on developers who want to distribute their apps on the platform. The EU found that Apple’s rules prevented developers from informing users about cheaper alternatives to in-app purchases, and forced them to use Apple’s own payment system, which charges a commission of up to 30%.
The EU’s competition commissioner, Margrethe Vestager, said in a statement that Apple’s rules “distorted competition in the market for music streaming services by raising the costs of competing services and limiting their ability to offer lower prices to consumers.” The fine, she said, was meant to send a clear message that such practices would not be tolerated.
Apple has denied any wrongdoing and said it would appeal the decision. In a statement, the company said that the EU’s investigation was based on “flawed logic and incomprehensible errors” and that it had complied with all relevant laws and regulations.
The fine is the latest in a series of antitrust actions taken against tech companies in recent years. In 2018, the EU fined Google €4.34 billion for abusing its dominant position in the mobile phone market, and in 2017, it fined Facebook €110 million for providing misleading information during its acquisition of WhatsApp.
The EU’s actions reflect a broader push to rein in the power of big tech companies and protect consumers from anti-competitive practices. As technology continues to play an increasingly important role in our lives, regulators are under pressure to ensure that the market remains fair and competitive for all players. The EU’s fine against Apple is a significant step in that direction, and serves as a warning to other tech companies that they will be held accountable for their actions.