In a significant blow to Apple, the European Union has fined the tech giant over €1.8 billion ($1.95 billion) for its anti-steering provisions affecting in-app purchases. These provisions, which barred music streaming apps from redirecting users to alternative payment methods outside of the App Store, were deemed by the European Commission as unfair trading conditions that favored Apple's commercial interests over competition.

Margrethe Vestager, the EU's antitrust chief, emphasized the need for Apple to open up its ecosystem to allow users more flexibility in app selection, payment methods, and device usage. The ruling targets Apple's long-standing practice of prohibiting developers from directing users away from the App Store to avoid Apple's 30 percent commission on in-app transactions, particularly in music streaming apps.

Vestager criticized Apple's conduct, citing nearly a decade of anti-competitive behavior resulting in inflated prices for music streaming subscriptions and a compromised user experience. The ban on anti-steering provisions will specifically affect music streaming apps, enabling users to explore alternative payment options outside of Apple's ecosystem easily.

While the ruling mirrors similar outcomes in the US, such as Epic Games' battle with Apple over Fortnite, the EU's Digital Markets Act (DMA), effective from March 7, presents broader implications. It mandates Apple to allow third-party app stores and non-Apple browser engines on iOS devices, ensuring greater competition and consumer choice.

Apple swiftly pointed fingers at Spotify, attributing the decision to the music streaming service's lobbying efforts. Despite Apple's claims of no credible evidence of consumer harm, it accused Spotify of being the primary beneficiary of the ruling, alleging extensive engagement with EC officials throughout the investigation.

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