Apple has been fined billions by the European Commission. The reason: abuse of power in the App Store. We will tell you more.
Billion-dollar fine for Apple
The European Commission has decided to impose a fine of billions on Apple. Abuse of power in the App Store is cited as the reason for this. This has to do with the subscriptions that you can take out in the Store, because you pay more there than if you take out a subscription via the internet. These prices are higher due to the commissions that Apple charges in the App Store.
Also read: Lawsuit against Apple: ‘AirPods made child deaf’
Because of these commissions, providers charge higher prices for their subscriptions to compensate for the amount they have to pay to Apple. Developers have to give fifteen or thirty percent to Apple, which makes it cheaper to take out a subscription via the internet. At the moment it is not allowed to mention this in the App Store, resulting in the new billions fine for Apple.
New arrangement in the App Store
European Commissioner Margrethe Vestager announced today that Apple will be fined billions. According to the Commission, many users pay too much due to the higher rates in the App Store. They have not made a conscious choice whether they want to take out the subscription via the App Store or via the internet. This is because iOS users often do not know anything about the price difference.
According to the European Commission, users are not fully informed about this and that is why Apple is now being fined billions. In addition, the EU demands that Apple change the regulations in the App Store so that users are informed. For example, it is currently prohibited for developers to contact subscribers by email or via the app to point out more favorable prices. According to the EU, this must change in the future.
Apple will appeal
Apple has already indicated in a press release that the company will appeal against the billion-dollar fine. In addition, the company is lashing out at Spotify, which is one of the main companies behind the lawsuit. This is striking, because Spotify itself does not offer any subscriptions in the App Store. For example, Apple mentions in the press release that Spotify does not donate any money to the company at all.
Also read: Apple must release iOS 17.4 soon – here’s why
It is not expected that the billion-dollar fine will cause Apple problems. In 2023, the company made approximately 100 billion euros in profit. Still, the fine is a serious warning for Apple, so the question is to what extent the policy in the App Store will be adjusted. For example, Apple will soon be forced by the EU to make major changes. Read here what will change in iOS and iPadOS 17.4 as a result of new European legislation.
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