Apple Looks to Challenge EU's $1.9 Billion Fine for Music Streaming Restrictions

Apple has lodged an appeal against the European Union's (EU) hefty 1.8 billion-euro ($1.9 billion) fine for allegedly obstructing access to information regarding cheaper music streaming services, according to a report by AFP on Tuesday.

Apple Appeals EU's $1.9 Billion Fine

The appeal, filed with the EU's General Court in Luxembourg on May 16, comes after the European Commission imposed the fine on Apple in March following a prolonged investigation initiated in 2020, prompted by a complaint from streaming giant and Apple Music's rival Spotify.

This penalty marked the EU's first antitrust fine against Apple and was levied on the grounds that the tech giant prevented app developers from notifying users of its iOS operating system about more affordable music subscription options available beyond the App Store.

Apple, contesting the fine, expressed its intention to challenge the penalty when it was initially imposed. The tech giant asserted that EU regulators found no evidence of consumer harm from its practices.

Meanwhile, the European Commission refrained from offering specific comments on Apple's appeal but reiterated its readiness to defend its decisions in court.

The clash between Apple and the European Commission doesn't stop here. Apart from this fine, the two entities are embroiled in another legal battle over a separate 13-billion-euro demand for back taxes owed by Apple to Ireland, currently under review by the EU's highest court.

Furthermore, the European Union's Digital Markets Act (DMA) has fueled the fire, with Apple among the tech giants targeted by the legislation. While the EU asserts that the DMA will promote fair competition, Apple has criticized it, citing potential risks to user privacy and security.

The DMA aims to rein in the power of major tech firms like Apple, Meta, and Microsoft by imposing a set of regulatory obligations on them. Apple's run-ins with the European Commission extend to a recent investigation launched under the DMA.

Apple's Alleged Anti-Steering Provisions

In March, the Commission unveiled its findings, stating that Apple's alleged anti-steering provisions violated EU antitrust rules by inhibiting app developers from fully informing iOS users about alternative, less expensive music subscription services.

These measures, which the Commission determined to be unfair trading practices, led to reported higher subscription costs for users and a degraded user experience.

Consequently, the Commission imposed the substantial fine on Apple, in which they considered factors such as the duration and gravity of the infringement, as well as the company's revenue and market capitalization.

The Commission also ordered Apple to remove the anti-steering provisions and refrain from repeating similar infringements in the future.

"The Commission found that Apple applied restrictions on app developers preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app ('anti-steering provisions'). This is illegal under EU antitrust rules," the EU said in an official statement.