The technology giant, widely recognized for its iPhone products, saw its shares drop to $173.98 by 1:10 p.m. in New York, a decrease from the previous close of $179.66.
This financial repercussion comes in the wake of the European Union’s regulatory body penalizing Apple with a hefty fine of 1.8 billion euros (approximately $1.95 billion). The fine was levied for what the European Commission describes as a ten-year period of market dominance abuse in the distribution of music-streaming services through its App Store.
The regulators pointed out that Apple enforced certain restrictions which not only elevated fees for developers but also, as a consequence, increased costs for consumers. Margrethe Vestager, the EU’s Executive Vice President in charge of competition policy, stated, “This is illegal under EU antitrust rules,” highlighting the seriousness of Apple’s actions against competitive practices in the market.
In response, Apple announced its intention to appeal the decision, arguing that the ruling lacked concrete evidence of consumer harm and failed to acknowledge the increasing competition in the market. The company’s statement criticized the decision as being “not grounded in existing competition law,” signaling a potentially prolonged legal battle ahead.
The inquiry into Apple’s practices was initiated after Spotify, a major player in the music streaming service sector, filed a lawsuit against Apple. Spotify accused the tech behemoth of imposing a 30% commission on app developers, a move that has been a focal point of contention in the broader debate over app store policies and their impact on competition.
Interestingly, as Apple faced a downturn in its stock value, Spotify’s shares saw an approximate 2% increase in Monday afternoon trading, indicating a mixed market reaction to the news.
This development is a significant moment for the tech industry, highlighting ongoing concerns over the power and influence of major technology firms. As Apple prepares to challenge the European Commission’s decision, the outcome of this appeal could have far-reaching implications for the company and its operations in Europe, potentially setting a precedent for how digital marketplaces operate and are regulated on the continent.
