Source: Telegraph
More than $78bn (£61bn) has been wiped off the value of Apple after it was fined €1.8bn (£1.6bn) by the European Union for breaking the bloc’s competition laws by favouring its own music streaming service over rivals.
The US tech giant’s shares have dropped 2.9pc after it was issued the penalty for raising the price iPhone users pay for music streaming by banning apps like Spotify from promoting cheaper alternatives.
Margrethe Vestager, the European Commission’s competition chief, said Apple had abused a dominant position for a decade, meaning that rivals to Apple Music found it more difficult to compete.
The fine is the first that the EU has imposed on the tech giant. The European Commission said Apple had imposed “anti-steering provisions” that prevented apps such as Spotify from directing users to cheaper subscriptions if users subscribed outside of its app.
The investigation into Apple’s practices was triggered after Spotify made a complaint five years ago.
Apple charges fees of up to 30pc for music subscriptions bought through apps, meaning many streaming companies have offered cheaper alternatives on their website, or stopped offering in-app subscriptions altogether.
Read full article: https://www.telegraph.co.uk/business/2024/03/04/ftse-100-markets-latest-news-japan-stocks-ai-nikkei/
