The Digital Markets Act (“DMA”) aims to deter anti-competitive practices. The European Commission designated Apple as one of the six “Gatekeepers” which imposes additional restrictions to level the playing field.
On the 4th of March, the European Commission fined Apple €1.8Bn to which the penalty stems from allegations of Apple abusing its dominant position in the market for the distribution of music streaming apps. The Commission’s investigation, triggered by a complaint in 2019 from Spotify, a Swedish audio streaming provider, delved into Apple’s practices regarding the distribution of music streaming apps via its ‘App Store‘ ecosystem. The probe unearthed evidence suggesting that Apple had employed restrictive measures that hindered competition and restrained consumer choice.
European Commissioner for Competition Margrethe Vestager explained that the lump sum of €1.8Bn was included as a deterrent because the initial fine, which she likened to a “parking ticket”, would have been insignificant to a gatekeeper.
While this represents Apple’s first antitrust fine from Brussels, the repercussions of this ruling could echo across the broader tech landscape, prompting heightened scrutiny of market practices and inadvertently reshaping the dynamics of competition within the industry, as per the DMA’s requirements.
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