The European Commission, the European Union’s executive branch, today issued a €1.84 billion fine to Apple Inc. over the App Store’s so-called anti-steering rules.

Officials have also ordered the iPhone maker to change the provisions in question. In a blog post responding to the development, Apple stated that it plans to make the changes within a few days. The company also signaled its intent to challenge the decision in court.

Apple charges iOS developers a fee every time a user makes an in-app purchase. To avoid the fee, developers can stop processing purchases via the in-app interface and instead direct users to an external e-commerce website. The App Store’s anti-steering rules, the focus of the fine the EU issued today, were created by Apple to regulate this practice.

Under the rules, an iOS app’s interface may not display a link to an external website where users can purchase items such as premium features. Furthermore, the interface may not list the prices that the external website offers. Apple’s anti-steering rules also place several other restrictions on the manner in which off-app purchase options can be promoted.

The European Commission decided to fine the company after finding that its anti-steering rules may have led iOS users to pay significantly higher prices for music streaming subscriptions. Additionally, officials determined the provisions caused “non-monetary harm in the form of a degraded user experience.” Because developers can’t include a link to external purchase options in their apps, users have to search manually for those purchase options.

The fine follows a nearly four-year investigation into Apple’s App Store rules. EU officials opened the probe in response to an antitrust complaint from music streaming provider Spotify Technology SA. The complaint, which was filed in 2019, accused Apple of implementing App Store rules that harm competitors. 

In a blog post responding to today’s fine, the iPhone maker stated 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 added that it plans to file an appeal.

Spotify, for its part, welcomed the decision. “Today’s decision marks an important moment in the fight for a more open internet for consumers,” the company wrote in a blog post. “Customers should know what options they have, and customers, not Apple, should decide what to buy, and where, when and how.”

Image: Apple