Apple slides as Europe levies massive fine tied to music streaming
Apple was hit by its first-ever EU fine Monday. It's big.
Apple (AAPL) shares moved lower Monday, extending their recent decline to around 4%, after regulators in Europe hit the tech giant with a $2 billion fine tied to allegations it restricted music subscription rivals on its App Store.
Europe's Competition Commission said Apple illegally prevented app developers from informing App Store users about cheaper subscription-music alternatives, including Spotify, a move the agency effectively deemed unfair competition.
When Spotify Technology (SPOT) , maker of the music streaming app, brought the case in 2019, it argued that Apple favored its own music service, to the detriment of rivals. That was thanks in part to fees Apple charges other app makers for selling content on its platform and to Apple's restrictions on linking to external pages where price promotions can be found.
Apple, the Cupertino, Calif., tech giant, said it would appeal the €1.8 billion verdict, saying the biggest beneficiary would be its European rival.
"Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation," Apple said in a statement.
"Today, Spotify has a 56% share of Europe's music streaming market — more than double their closest competitor's — and pays Apple nothing for the services that have helped make them one of the most recognizable brands in the world," the statement added. "A large part of their success is due to the App Store, along with all the tools and technology that Spotify uses to build, update and share their app with Apple users around the world."
Apple shares were marked 0.95% lower in premarket trading to indicate an opening bell price of $177.95 each. Such a move would extend the stock's six-month decline to around 6.3%.
Related: Veteran fund manager picks favorite stocks for 2024
What's Your Reaction?
