[APPLE - SANCTIONED FOR ABUSE OF DOMINANT POSITION]

[COMPETITION LAW - ABUSE OF A DOMINANT POSITION - PENALTIES]

🚨 According to the European Commission, the Big Apple has bitten off more than it can chew. The cost: €1.84 billion.

⚖️In June 2020, the European Commission opened formal investigations into anti-competitive practices against Apple.

On 4 March 2024, Apple was fined by the European Commission for abuse of a dominant position under Article 102(a) of the TFEU and Article 54 of the Agreement on the European Economic Area. The quantum of the fine is valued at 1.84 billion euros.

More specifically, the European Commission found that Apple had engaged in unfair ‘anti-steering’ commercial practices to the detriment of consumers in the market for the distribution of music streaming applications. For example, Apple had imposed restrictions on the music streaming platforms present in the App Store, forcing them to use Apple's proprietary integrated purchasing system ‘IAP’, in return for a 30% commission. In addition, app developers could not provide iOS users with information about cheaper subscription services available outside the App Store.

Apple has announced its intention to appeal. Its official position is that the European Commission's decision is not in line with the reality of a competitive and flourishing market. It considers that the European Commission has not sufficiently justified the harm caused to consumers, and that Spotify (which has a 56% share of the European streaming market) is not making any contribution in return for using Apple's tools, technologies and services, which have enabled it to become ‘one of the best-known brands in the world’.

This conviction marks an important step in the fight against anti-competitive practices and the first steps in the implementation of the European Digital Markets Act, which comes into force on 6 March 2024.

The compliance plan announced by Apple in this context has been greeted with scepticism by certain players. In an open letter to the European Commission, a number of companies and associations, including Epic Games, Deezer and Proton, criticised the new conditions proposed by Apple, which cast doubt on the effectiveness of the ‘cosmetic reforms’.

#competitionlaw #faircompetition #dominantabuse #sanction #dma