Apple was hit with the first-ever EU fine

Apple’s actions against the App Store as a test of the EU’s antitrust laws: Spotify and Apple have sued Spotify over DMA violation

Music streaming companies and other apps cannot inform their users on Apple devices about how to sign up for subscription offers outside the app, according to the rules of the app store. Apple takes a cut on the prices of in-app subscriptions and app users can only see sign up options via the Apple payments system. The app makers do not offer in-app purchases because of the commission. “Some consumers may have paid more because they were unaware they could pay less if they subscribed outside the app,” Vestager said. “This is illegal under EU antitrust rules.” Apple was the first to say the EU had failed to provide evidence of consumer harm.

The Commission took into account a number of factors when setting its fine, such as Apple’s turnover and market value, as well as incorrect information submitted by Apple during the administrative procedure.

Alongside its investigation into Apple’s App Store policies, the European Commission has also been looking at Apple’s policy of restricting the iPhone’s tap-top-pay NFC (near-field communication) to its own wallet and payment services. As a result of the investigation, Apple has offered to let third-party mobile wallet and payment providers use the iPhone’s NFC feature for payments.

On March 1st, Spotify also published an open letter backed by 33 other companies and associations that spotlighted concerns with Apple’s DMA compliance. In the letter, Spotify claimed that the EU’s response to the proposal will “serve as a litmus test of the DMA and whether it can deliver for Europe’s citizens and economy.”

The two companies have fought for years as both accused the other of exploiting its dominance to stifle innovation. Each has made incursions into the other’s territory. When Apple launched its own streaming service Apple Music in 2015, Spotify claimed Apple was able to undercut the platform’s prices because it didn’t have to pay the same App Store fees as rivals. In response to Apple’s move to restrict streaming of shows on their service,Spotify began an assault on high profile shows.