Apple Fined $2 Billion Well Apple has been hit with a nearly $2 billion doll fine by the European Union for breaking.

Its competition laws the EU says the tech giant prioritized its own music streaming service over others rival app Apple Fined $2 Billion.

Spotify had complained Apple put it at a disadvantage by not letting it tell iPhone customers about subscription deals.

This is the first ever penalty against Apple levied by the EU the EU has led Global efforts to crack down on big tech.

What is the Apple issue in Europe?

Companies for more on this we’re joined live now by Tech analyst Cary Levy uh car me thanks so much for joining us.

This battle has been brewing for years now break this down for us what’s been going on between Spotify and apple.

Spotify launched his first complaint in 2019 basically saying Apple was making it difficult for consumers to find.

Its services outside of Apple’s ecosystem for less money uh and Apple Fined $2 Billion that they were kind of blocking spotify’s.

Ability to set up alternate ecosystems charging Spotify what they call the 20 the 30% Apple tax Apple Fined $2 Billion.

Apple takes a 30% cut of everything that flows through the App Store uh so you know this this goes back.

If we followed other cases like apple versus epic this is always at the core of it uh but this is the first time.

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Why was Apple fined 1.8 billion euros ($ 1.95 billion by European Union regulators?

EU has used its new digital markets act to essentially tell a big American company the way you do business doesn’t cut.

It this is a monopoly this is antitrust behavior and it’s going to cost you big time and you better change your behaviors.

It’s going to cost even more next time so uh this is Europe essentially digging its heels and Apple Fined $2 Billion telling uh Apple.

This needs to end and it needs to end now I want to talk about what that means what that message means for consumers for listeners.

Who are of course looking for more competition when the EU cracks down on big tech companies like this and says no more Monopoly.

How does that benefit the user Apple Fined $2 Billion in the long term it could open the door.

Consumers paying less for subscription services to streaming uh platforms like Spotify because right now Spotify is bound by Apple’s.

Why did Apple decide to trade internationally?

Kind of infrastructure uh and and you know if you want to provision or if you want to subscribe to Spotify through Apple’s devices.

You’re going to pay more for it uh what this does is it opens the door to making it easier that well.

If you don’t want to get Spotify through Apple’s app store you can get it another way and apple cannot stop Spotify from doing that cannot make it harder for consumers to work.

Their way around so the end of the day it means more choice for consumers uh if they use Apple products for other uh products from other providers.

It means that you that that uh better competition so you may have more choice because maybe there are other companies.

Spotify that have not been able to build a viable business model the way things used to be but as Apple’s loosens.

R right rules perhaps they will now come into the market consumers will have more choice so obviously apple.

Powerhouse a tech giant so I’m sure it can afford this fine from an Optics perspective though how much will it hurt.

This fine hurt the company and I want to get your thoughts on Apple planning to appeal this decision.

Apple has made it very clear it doesn’t agree with this decision it says that its behavior is entirely legal Apple Fined $2 Billion.

They you know they ensure the way they do business already ensures adequate competition.

There are all sorts of options for consumers as well as competing companies uh so I would expect that the lawyers.

Already drafting up the appeal as we speak and Apple Fined $2 Billion this will be working its way through.

When did Apple expand to other countries Apple Fined $2 Billion?

European Union’s process for years to come um but I think you know the good news here is that uh even though.

Apple can easily afford to pay this they’re sitting on hundreds of billions of dollars in cash sends a very clear message to Apple that you can’t keep behaving.

This way because it will step up from that $2 billion uh the provisions for the digital markets act allow for fines up to 10% of global revenues of a company.

Which in Apple’s case would be huge and if you if you do it again within 8 years 20% so Europe means business.

They always been fairly Leading Edge on Tech legislation like this Apple Fined $2 Billion and those costs could escalate.

Apple wants to take this to the mat car me I’m sure this happens all the time does this remind you of any other cases a time.

When other massive companies tried to limit competition and tried to maybe be a little sneaky certainly.

Who brought Apple to Europe?

I mean a generation ago when we were all just getting into the internet and Microsoft decided to bundle Internet Explorer in with Windows.

Microsoft ultimately lost that battle uh and and but the thing is is and so they were forced to open up the ecosystem to other competing companies.

It took so long for that case to work its way through the course that courts that by the time it did all the other competitors.

Really couldn’t compete anymore Microsoft lost the battle but they won the war and so I think Apple knows.

This they can just keep spending and spending and spending on legal challenges to this knowing full well that time.

Their side not on the side of consumers so interesting Tech analyst car Levy.

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