Apple fined nearly $2 billion for quashing its music rivals
Commission says the Cupertino tech titan kept customers from finding music at cheaper rates
The European Union leveled its first antitrust penalty against Apple on Monday, fining the U.S. tech giant nearly $2 billion for unfairly favoring its own music streaming service by forbidding rivals like Spotify from telling users how they could pay for cheaper subscriptions outside of iPhone apps.
Apple muzzled streaming services from telling users about payment options available through their websites, which would avoid the 30% fee charged when people pay through apps downloaded with the iOS App Store, said the European Commission, the 27-nation bloc's executive arm and top antitrust enforcer.
“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,” Margrethe Vestager, the EU's competition commissioner, said at a news conference in Brussels.
Apple, which contests the decision, behaved this way for a decade, resulting in “millions of people who have paid two, three euros more per month for their music streaming service than they would otherwise have had to pay,” she said.
It's the culmination of a bitter, yearslong feud between Apple and Spotify over music streaming supremacy. A complaint from the Swedish streaming service five years ago triggered the investigation that led to the 1.8 billion-euro ($1.95 billion) fine.
The decision comes the same week new rules take effect to prevent tech giants from cornering digital markets.
The EU has led global efforts to crack down on Big Tech companies, including three fines for Google totaling more than 8 billion euros, charging Meta with distorting the online classified ad market and forcing Amazon to change its business practices.
Apple's fine is so high because it includes an extra lump sum to deter it from offending again or other tech companies from carrying out similar offenses, the commission said.
Apple hit back at the commission and Spotify, saying it would appeal Monday's fine.
“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,” the company said in a statement.
It said Spotify stood to benefit from the EU's move, asserting that the Swedish streaming giant met over 65 times with the commission during the investigation, holds a 56% share of Europe's music streaming market and doesn't pay Apple for using its App Store.
“Ironically, in the name of competition, today's decision just cements the dominant position of a successful European company that is the digital music market's runaway leader,” Apple said.
Spotify said it welcomed the EU fine, without addressing Apple's accusations.
“This decision sends a powerful message — no company, not even a monopoly like Apple, can wield power abusively to control how other companies interact with their customers,” Spotify said in a blog post.
IRS expands free file system to California
California taxpayers can now use IRS Direct File, a free electronic filing service that debuted earlier this year for federal tax returns.
The IRS' pilot program launched in January for government workers and was expanded Monday to qualifying taxpayers across the state.
The agency said income earners who typically claim a standard deduction are the target users for Direct File.
Direct File should not be confused with the agency's existing Free File program, which offers commercial software for free to lowand middle-income earners.
Here are some of the nuts and bolts of Direct File:
• Direct File first prompts taxpayers to answer screening questions to determine if they are eligible.
• Examples of eligible filers include those who report income on a W-2. Filers who claim income from other gigs are not eligible.
• Those with income from unemployment compensation, Social Security benefits and income interest less than or equal to $1,500 may also be eligible.
• Taxpayers who are itemizing their deductions rather than taking the standard deduction cannot use Direct File this year.
• Direct File does not prepare state tax returns.
• Filers can use a smartphone, laptop or tablet to file.
• A live-chat function connects taxpayers with a customer service representative.
• There is no income threshold.
Other states that were part of the pilot include Arizona, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington and Wyoming. FAA says Boeing fails to meet standards
The Federal Aviation Administration said Monday its audit of manufacturing at airplane-maker Boeing and its key supplier turned up “multiple instances” of them failing to make sure manufacturing met quality standards.
The FAA said that it found “non-compliance issues” with Boeing's manufacturing-process control and parts handling and storage. It did not provide details.
The agency said it gave a summary of findings from its six-week audit to Boeing and supplier Spirit AeroSystems, but it did not make the summary public. A spokeswoman said the FAA can't release details because its investigation of Boeing is continuing.
The agency has stepped up its scrutiny of Boeing since Jan. 5, when a panel blew off a Boeing 737 Max 9 as it flew 16,000 feet above Oregon.
Pilots of the Alaska Airlines jet were able to safely land the plane despite the hole in its side. American places orders for 260 short-haul jets
American Airlines Group Inc. agreed to buy 260 short-haul aircraft that include a massive deal for Boeing Co. 737 Max jets, a key endorsement of the planemaker as it works through a crisis of confidence following a near-catastrophic accident in January.
The order includes 85 Boeing Max 10 aircraft, 85 A321neo planes from Airbus SE and 90 Embraer SA E175 regional jets, American said Monday in a statement. The carrier also has options to order 193 more planes.
It's the first major deal for Boeing's marquee 737 Max since the issue on an airborne Alaska Airlines jet earlier this year left the planemaker in crisis.
Orders by blue-chip buyers like American often influence other customers.