Apple contesting Spotify’s complain leading to antitrust fine of approx. 2 Billion Euros

Apple is contesting the €1.8 billion antitrust fine from a Spotify complaint. In March, the tech giant faced a hefty fine prompted by Spotify’s 2019 grievance. The complaint highlighted Apple’s practice of levying a 30% tax on app makers for first-year subscriptions and 15% for subsequent years, giving Apple Music a competitive edge over Spotify. In response, Apple is taking legal action, filing a suit with the EU’s General Court in Luxembourg to challenge the fine.

Apple’s defense revolves around the assertion that the European Commission lacked credible evidence demonstrating consumer harm due to its App Store policies. However, this stance overlooks antitrust laws, which prohibit predatory pricing. Nevertheless, this dispute will likely be settled through legal proceedings between the EC and Apple’s legal teams. Previously, app makers were prohibited from advertising lower subscription costs via alternative payment methods outside the App Store. However, following regulatory intervention, the EC mandated that Apple permit such advertising to promote competition and consumer choice within the digital marketplace.

[Image Source: Variety]