Apple Fined Nearly $2B by EU Over App Store Practices, Says It Will Appeal the Decision

The European Union (EU) fined Apple (AAPL) around $2 billion (1.8 billion euros) for "abusive App store rules for music streaming providers" in a move that the iPhone maker says could bolster Spotify (SPOT).

The European Commission said in a press release Monday that it fined the company for violating EU antitrust rules and that Apple "abus[ed] its dominant position on the market for the distribution of music streaming apps to iPhone and iPad users (‘iOS users') through its App Store."

"Apple applied restrictions on app developers preventing them from informing iOS users about alternative and cheaper music subscription services available outside of the app (‘anti-steering provisions')," the release said.

The iPhone maker based in Cupertino, California responded that it intends to appeal the EU's decision, which it said would bolster the already dominant position of Swedish company Spotify.

"Today, the European Commission announced a decision claiming the App Store has been a barrier to competition in the digital music market," Apple said in a release, adding that "the decision was reached despite the Commission’s failure to uncover any credible evidence of consumer harm, and ignores the realities of a market that is thriving, competitive, and growing fast."

Apple claimed that "the primary advocate for this decision—and the biggest beneficiary—is Spotify," which the company said met with the Commission "more than 65 times during this investigation."

The fine comes ahead of the Digital Markets Act (DMA) going into effect on March 6. The new law regulates big tech companies to promote competition, consumer choice, and innovation in the EU.

Apple, which the Commission has designated as a "gatekeeper," has already made changes to some of its systems, including the App Store and Apple Pay, to comply with the DMA.

Apple shares were down about 3% at $174.22 as of 11:50 a.m. ET Monday.