Apple (AAPL) Shares fell on Monday, extending their recent decline to around 4%, after regulators in Europe hit the tech giant with a $2 billion fine linked to allegations it restricted rivals' music subscriptions in your 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 deemed effectively unfair competition.
When Spotify technology (PLACE) , creator of the music streaming app, brought the case in 2019, arguing that Apple favored its own music service, to the detriment of its rivals. This was due in part to the fees Apple charges other app makers for selling content on its platform and Apple's restrictions on linking to external pages where price promotions can be found.
Apple, the Cupertino, California 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 the European music streaming market (more than double that of its closest competitor) and pays nothing to Apple for the services that have helped it become one of the most popular brands. recognized in the world,” the statement added. “Much of its success is due to the App Store, along with all the tools and technology that Spotify uses to create, update and share its app with Apple users around the world.”
Apple shares fell 0.95% in pre-market trading, indicating an opening price of $177.95 each. Such a move would extend the stock's six-month decline to about 6.3%.
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