The European Union has imposed a €1.8 billion fine on Apple after determining the tech giant breached EU competition laws regarding its music streaming services. The decision, announced by EU competition chief Margrethe Vestager, accuses Apple of restricting competition by limiting developers from promoting alternative music subscription services outside of its ecosystem. This landmark fine is a result of an investigation triggered by a complaint from Spotify in 2019, accusing Apple of imposing a 30% fee on purchases made through the App Store and benefiting its own service, Apple Music, by restricting developers from informing users of cheaper subscription options available elsewhere.

Apple has announced its intention to appeal the decision, asserting that there is no evidence that its practices have harmed consumers and highlighting Spotify’s success in the market despite these allegations. Furthermore, Apple plans to adjust its App Store practices in Europe in compliance with the upcoming Digital Markets Act, which will allow for more competition within the tech market by enabling alternative app stores and payment systems for European users.

This fine adds to a series of penalties levied by the EU against major tech companies as part of its efforts to curb anti-competitive practices within the digital market. The ruling stipulates that Apple cannot continue to block apps that offer services outside of its iOS software, marking a significant shift in how tech giants may operate within Europe in the future. Despite Apple’s objections and planned appeal, the EU’s decision is seen as a critical move toward ensuring fair competition and consumer choice in the digital services market.