Apple’s $1.9 billion EU Sanction May Trigger Avalanche of Compensation Claims

The European Union has fined  Apple $1.9 billion for allegedly abusing its market dominance in music streaming. The company stands accused of stifling competition and limiting consumer choice regarding music streaming services.

This situation may lead to a wave of compensation claims from users who believe they were overcharged. But the legal problems  for the Cupertino-based company in the EU go beyond this streaming case.

EU Sanctions Apple

Apple has received a $1.9 billion fine from the European Union for allegedly abusing its dominant position in the market. The EU accused Apple of limiting competition in the music streaming sector, including Spotify. Thus, it imposed restrictions on their presence on Apple’s platforms. Additionally, Apple received accusations of banning streaming apps from informing users about cheaper alternatives outside the App Store, a practice ordered to stop by the EU Commission.

Margrethe Vestager, European Competition Commissioner, also criticized  Apple’s practice in streaming sector. “For a decade, Apple has exploited its dominant market position in distributing music streaming apps through the App Store,” she said. And emphasized that this behavior violates EU antitrust regulations. The EU Commission alleged that Apple’s actions deprived consumers of informed choices, leading them to pay more for services. Moreover, developers have passed on the costs associated with accessing the App Store to end users.

Apple has announced  its intention to challenge the EU’s ruling, asserting that there is “no credible evidence” of harm to consumers. The company contends that “the reality is that European consumers have more choices than ever.” The investigation started after a complaint from Spotify, which alleges that it had to increase subscription prices to offset the expenses stemming from Apple’s control over the App Store.

According to Apple, Spotify stands to gain from the decision. “The primary supporter – and the biggest beneficiary – of this ruling is Spotify, a company headquartered in Stockholm, Sweden,”, it complained. Apple emphasized that “Spotify boasts the largest music streaming app globally and has engaged with the European Commission over 65 times throughout this investigation.”

Fine Impact Will Be Immediate

According  to Valerio Vertua of 42 Law Firm, the European judge’s decision resulted in a cease and desist order. This implies an immediate impact on the market and users. This urgency is compounded by the fact that consumers have five years from the cessation of contested behavior to file compensation claims

“Therefore, Apple, like any operator in a similar situation, the longer it delays in complying with EU directives, the more it risks facing a wide range of civil claims for compensation. The right to compensation in this case is comprehensive, including the payment of legal interest to the consumer,” Vertua said.

According to Vertua’s estimation , this could potentially amount to €3 per month for each installed streaming service. It’s a value that then needs to be multiplied by five years. All of this would need to be repeated for each Apple user.

However, the burden remains on the consumer to “demonstrate the damage suffered, even if not quantifying it exactly, a task which ultimately falls to the judge”, specifies Vertua.

What Can Apple Do?