Apple hit with near $2.0 billion fine in EU

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on Mar 4, 2024
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  • 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.

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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.

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EU’s fine on Apple relates to music streaming

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The 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’

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The 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!

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