The European Commission has fined Apple with €1.84 billion for abusing its dominance in the market for the distribution of music streaming apps to iPhone and iPad users through its App Store. The Commission found that Apple violated EU competition rules by restricting app developers from informing iOS users about alternative and cheaper music subscription services available outside of the app. These restrictions, known as anti-steering provisions, were deemed unfair and in breach of EU competition rules.

As the sole provider of the App Store enabling developers to distribute their apps to iOS users throughout the EEA, Apple's anti-steering provisions banned music streaming app developers from fully informing iOS users about alternative music subscriptions services outside of the app  e.g. on the developer's own website or elsewhere on the internet, and about the price differences of using such alternatives instead of Apple's in-app purchase mechanism. 

The Commission considers that Apple's conduct, which lasted for almost ten years, may have led many developers and (indirectly) iOS users to pay significantly higher prices for music streaming subscriptions. This finding expressly opens the door to civil damages claims if today's decision is upheld. Moreover, Apple's conduct led to non-monetary harm in the form of degradated user experience. In addition to the fine, the Commission has ordered Apple to remove the anti-steering provisions and refrain from repeating the infringement or from adopting similar practices in the future.

The basic fine, which was calculated based on the duration and gravity of the infringement, Apple's total turnover and market capitalization, seems to have amounted to €40 million. An additional lump sum of €1.8 billion was added to ensure deterrence bringing the total fine to €1.84 billion. The Commission considered this UNPRECEDENTED increase was considered necessary to ensure that the total amount of the fine is proportionate to Apple's global revenues and is necessary to achieve deterrence.

https://ec.europa.eu/commission/presscorner/detail/en/ip_24_1161

https://youtu.be/w3jawu_UcPI