European Union Fines Apple IDR 31.4 Trillion For Violation Of Antitrust Law

Chairman of the European Competition Commissioner, Margarethe Vestager (photo: x @vestager)

JAKARTA - The European Union fined 1.84 billion euros (Rp 31.4 trillion) to Apple (AAPL.O) on Monday, March 4. This is the first antitrust fine ever given to the iPhone maker by the EU, for preventing Spotify and other music streaming services from informing users of payment options beyond its App Store.

The European Commission's decision was sparked by complaints in 2019 by Swedish music streaming service Spotify over these restrictions and the cost of 30% of the App Store imposed by Apple.

European Union regulators say that Apple's restrictions are unfair trade conditions, a relatively new argument in an antitrust case and are also used by Dutch antitrust authorities in a decision against Apple in 2021 in a case filed by dating app providers.

The fine consists of a base element of 40 million euros - described by European Competition Commissioner Margarethe Vestager, as "a ticket" for the US tech giant - plus 1.8 billion euros above it as a deterrent. A total of 1.84 billion euros is equivalent to 0.5% of Apple's global turnover," Vestager said.

Apple criticized the EU's decision, saying it would challenge it in court. The decision at Luxembourg-based General Court, Europe's second-highest, is likely to take several years. Until then, Apple had to pay a fine and comply with EU orders.

"This decision was taken although the Commission failed to find credible evidence of consumer losses, and ignored the reality of a growing, competitive, and rapidly growing market," Apple said in a statement.

Vestager ordered Apple to remove anti-gaining provisions and to refrain from similar practices in the future.

Apple said Spotify did not pay the commission to Apple for selling subscriptions on its website and not on Apple's App Store.

Spotify welcomes the EU's decision but says there are other issues in other areas.

Vestager ordered Apple to remove its App Store restrictions, which are the same as requirements under a new EU technology regulation known as the Digital Markets Act (DMA) that Apple must comply with on March 7.

However, Apple fines about a quarter of the 8.25 billion euros fines EU regulators paid Alphabet's parent from Google in three cases in the previous decade.

Unlike the music streaming case, Apple is trying to complete another UE antitrust investigation by offering to open its mobile tap-and-go payment system to competitors.

The EU regulator, which then seeks feedback from competitors and users, is likely to accept its offer without fined the company.