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Apple Hit With $2 Billion EU Antitrust Fine; Concerns Rise Over iPhone Demand

•, by Tyler Durden

Additionally, another Wall Street analyst wrote a note to clients about mounting concerns surrounding the demand for iPhones and wearable products. 

Let's begin with the news from Europe. 

The European Commission, the EU's executive body, wrote in a statement that after a yearslong investigation into Apple's app-store practices. It was found that Apple violated antitrust rules by limiting Spotify and other music streaming services from allowing users to pay outside the App Store. 

The EU competition enforcer wrote in a statement:

Today, the Commission has fined Apple €1.8 billion for abusing its dominant position on the market for the distribution of music streaming apps.

Apple did so by restricting app developers' ability to inform users of Apple devices about alternative, cheaper options to purchase music available on the internet outside of the Apple ecosystem.

This is illegal. And it has impacted millions of European consumers, who were not able to make a free choice as to where, how, and at what price to buy music streaming subscriptions.

The Commission noted: 

"For a decade, Apple has restricted music streaming app developers from informing their consumers about cheaper options available outside of the app. Apple has done so by contractually imposing 'anti-steering rules' on music streaming app developers." 

It lists three examples of Apple's 'anti-steering obligations'

First, music streaming developers were not allowed to inform their users, inside their own apps, of cheaper prices for the same subscription on the internet.

Second, they were also not allowed to include links in their apps to lead consumers to their websites and pay lower prices there.

And third, they were also not allowed to contact their own newly acquired users, for instance by email, to inform them about pricing options after they set up an account.