Apple hit with US$2 billion EU fine over app store rules

Apple Inc. was hit Monday with a €1.8 billion (US$2 billion) penalty from the European Union over an investigation into allegations it shut out music-streaming rivals, including Spotify Technology SA, on its platforms.

The European Commission also ordered the Cupertino, California-based firm to stop preventing music-streaming apps from informing users of cheaper deals away from Apple’s App Store. It’s the first fine the regulator has handed down to Apple. Shares were down less than one per cent in premarket trading in New York.

“For a decade, Apple abused its dominant position in the market for the distribution of music streaming apps through the App Store,” EU antitrust chief Margrethe Vestager said. “They did so by restricting developers from informing consumers about alternative, cheaper music services available outside of the Apple ecosystem.”

Apple said it will appeal the EU’s decision, which sets off a legal battle that could last for years. In a statement, the company said regulators failed to “uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast.”