Apple hit with near $2.0 billion fine in EU
- Apple has been accused of abusing its dominance in music streaming.
- It is one of the biggest fines against a tech company in EU.
- Apple stock is now down nearly 10% versus its year-to-date high.
European Commission just announced a €1.8 billion ($1.95 billion) fine on Apple Inc (NASDAQ: AAPL). Shares of the iPhone maker are slightly down in premarket on Monday.
EU’s fine on Apple relates to music streaming
Copy link to sectionThe multinational has been accused of abusing its dominance in music streaming.
The near $2.0 billion fine that Brussels imposed on Apple Inc today is one of the biggest ones the European Union has ever inflicted on a technology company.
The European Commission had launched the aforementioned probe following a complaint from peer Spotify in 2019. Apple’s conduct, as per the antitrust regulator, “may have led many iOS users to pay significantly higher prices for music streaming subscriptions”.
$AAPL is currently down nearly 10% since its year-to-date high in January.
Digital Markets Act dubbed Apple a ‘gatekeeper’
Copy link to sectionThe European Commission labelled Apple Inc and a bunch of its peers including Meta Platforms and Microsoft Corp as “gatekeepers” under its Digital Markets Act in 2023.
That made the Nasdaq-listed firm to open up its flagship devices like iPad and iPhone to alternative app stores last month – following continued complaints from developers against the 30% fee the tech titan forces on in-app purchases.
The news arrives only days after Apple Inc gave up on its long-standing plans of launching an electric car that, as per Alex Kantrowitz of “Big Technology” hints at a “cultural issue” within the California-based giant (find out more).
Still, Wall Street currently has a consensus “overweight” rating on $AAPL.
This is a developing story. Check back in a few minutes for more updates!
