On March 4, 2024, the European Commission found that Apple’s rules for music-streaming apps breached EU competition law and fined the company €1,840,984,000. Spotify welcomed the decision, saying Apple’s restrictions limited what it could tell iPhone users about subscription options. Apple rejected the finding, defended its App Store policies and said it would appeal.
What did the European Commission decide?
The Commission’s case concerned rules Apple applied to music-streaming providers on iOS. It found that Apple’s anti-steering provisions restricted those providers from informing users about subscription options available outside their apps, limiting users’ ability to make an informed choice. The decision treated the restrictions as unfair trading conditions under Article 102(a) of the Treaty on the Functioning of the European Union. Read the European Commission’s Case AT.40437 decision.
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The Commission set the fine at €1,840,984,000. Its decision says the amount included €40,984,000 calculated under its general methodology and an additional €1,800,000,000 lump sum. This was the Commission’s legal finding and penalty; it is distinct from either company’s public characterization of the dispute.
What rules were at issue?
The dispute was about both Apple’s in-app purchase rules for paid digital content and its anti-steering provisions. The latter restricted streaming services from telling users in their iOS apps about offers or subscription routes outside the app. The Commission’s decision focused on how those conditions affected communication and user choice, rather than on a general finding about every App Store rule or every app category.
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Spotify said the restrictions prevented it from showing subscription prices, upgrade information, promotions, discounts and alternative ways to subscribe in its iOS app. In Spotify’s view, users therefore could not readily compare available subscription choices from within the app. That is Spotify’s account of the practical effect; the Commission’s legal conclusion was that Apple’s conditions infringed EU competition law.
How did Spotify and Apple respond?
Spotify welcomed the decision
Spotify said the Commission had made clear that Apple’s limits on communications to consumers were unlawful. The company framed the decision as a win for consumer choice, arguing that users should be able to learn about subscription offers and ways to subscribe outside the app.
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In an August 14, 2024 update, Spotify said it was opting into Apple’s music-streaming entitlement for the EU. Spotify said this allowed EU iPhone users to see pricing information and a direction to Spotify’s website, while a clickable purchase link remained unavailable under Apple’s terms as Spotify understood them at that time. This is a dated account of the app flow, not confirmation of what users can see in Spotify’s app today. Spotify’s response and update.
Apple disputed the Commission’s finding
Apple said the decision lacked credible evidence of consumer harm, argued that the App Store helped Spotify grow, and said Spotify paid Apple nothing because it sold subscriptions through its website. Apple also characterized Spotify as seeking more favorable App Store rules and said it would appeal. Those are Apple’s arguments, not findings by the Commission. Apple’s March 4, 2024 statement.
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Apple’s statement also said Spotify held 56 percent of Europe’s music-streaming market. Apple cited growth over eight years from 25 million subscribers to almost 160 million subscribers, alongside more than 300 million active listeners, and said Spotify met with the Commission more than 65 times during the investigation. These figures are claims made by Apple in its statement; they should not be read as independently verified Commission statistics.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How does the DMA fit into the story?
The music-streaming antitrust decision is separate from the European Union’s Digital Markets Act (DMA) gatekeeper designations. Apple’s DMA information page says the Commission designated Apple a gatekeeper for iOS, the App Store and Safari on September 5, 2023, and for iPadOS on April 29, 2024. Those dates provide regulatory context, but they are not the basis or outcome of the March 2024 music-streaming decision. Apple’s DMA information page.
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