Apple is facing a nearly $2 billion fine from the European Union. The EU leveled the fine in response to an antitrust penalty against Apple on Monday, March 4, ruling it forbade rivals like Spotify from notifying customers of how they could pay for cheaper subscriptions outside of Apple’s app store, according to The Associated Press.
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The EU said that the fine imposed on Apple “reflects both Apple’s financial power and harm that Apple’s conduct inflicted on millions of European users.”
However, Apple disagreed with the decision.
“The facts simply don’t support this decision,” the company said in a statement regarding the EU’s ruling.
The ruling by the EU comes after Spotify argued Apple’s 30% commission fees hurt the company financially while benefiting Apple. The Verge reported that Apple was able to sell subscriptions to Apple Music through its app store without being assessed a similar fee.
However, Apple challenged Spotify’s arguments, saying Spotify added more than 100 million subscribers outside of its app store over the last eight years, according to The Verge. Additionally, Apple contends that Spotify benefited from Apple’s software tools and app updates without paying for the services because of that.
The ruling by the EU is part of a larger crackdown. According to The New York Times, a new EU rule that mandates Apple to allow third-party marketplaces on the iPhone goes into effect this year. Apple is reportedly refining its app store to comply with the law.
Apple is also facing a legal fight in the U.S.
The New York Times reported that a U.S. court ruled Apple must allow app developers to link to other payment methods. A judge ordered the move after a legal challenge from Epic Games, the maker of Fortnite. As a result, Apple did allow developers to link out to web-based payment methods, but it is still charging up to a 27% commission fee.
Meanwhile, as European regulators enforce penalties on Apple, the company reported revenue of $119.58 billion and a net profit of $33.92 billion in its latest quarter.
