Apple hit with more than $1.95 billion EU antitrust fine over music streaming
The European Commission, the European Union’s executive arm, on Monday hit Apple with a 1.8 billion euro ($1.95 billion) antitrust fine for abusing its dominant position on the market for the distribution of music streaming apps.
The commission said it found that Apple had applied restrictions on app developers that prevented them from informing iOS users about alternative and cheaper music subscription services available outside of the app.
Apple also banned developers of music streaming apps from providing any instructions about how users could subscribe to these cheaper offers, the commission alleged.
This is Apple’s first antitrust fine from Brussels and is one of the biggest dished out to a technology company by the EU.
Apple shares were down around 2.5% in morning trading in the U.S.
The European Commission opened an investigation into Apple after a complaint from Spotify in 2019. The probe was narrowed down to focus on contractual restrictions that Apple imposed on app developers which prevent them from informing iPhone and iPad users of alternative music subscription services at lower prices outside of the App Store.
Apple’s conduct lasted almost 10 years, according to the commission, and “may have led many iOS users to pay significantly higher prices for music streaming subscriptions because of the high commission fee imposed by Apple on developers and passed on to consumers in the form of higher subscription prices for the same service on the Apple App Store.”
Apple response
In a fiery response to the fine, Apple said Spotify would stand to gain the most from the EU pronouncement.
“The primary advocate for this decision — and the biggest beneficiary — is Spotify, a company based in Stockholm, Sweden. Spotify has the largest music streaming app in the world, and has met with the European Commission more than 65 times during this investigation,” Apple said in a statement.
“Today, Spotify has a 56 percent share of Europe’s music streaming market — more than double their closest competitor’s — and pays Apple nothing for the services that have helped make them one of the most recognisable brands in the world.”
Apple said that a “large part” of Spotify’s success is thanks to the Cupertino, California-based giant’s App Store, “along with all the tools and technology that Spotify uses to build, update, and share their app with Apple users around the world.”
Apple said that Spotify pays it nothing. That’s because instead of selling subscriptions in their iOS app, Spotify sell them via their own website stead. Apple does not collect a commission on those purchases.
Developers over the years have spoken out against the 30% fee Apple charges on in-app purchases.
Spotify in a statement called the commission’s decision “an important moment in the fight for a more open internet for consumers.”
“Apple’s rules muzzled Spotify and other music streaming services from sharing with our users directly in our app about various benefits—denying us the ability to communicate with them about how to upgrade and the price of subscriptions, promotions, discounts, or numerous other perks,” Spotify said.
“Of course, Apple Music, a competitor to these apps, is not barred from the same behaviour.”
Apple fine just a ‘parking ticket’
The commission said Apple prevented developers of music streaming apps from informing their iOS users within their apps about prices of subscriptions or offers available elsewhere.
App developers could not include links in their apps leading iOS users to the app developers’ websites where alternative subscription could be bought, the commission alleges.
The EU’s executive arm also said Apple prevented app developers from contacting their own newly acquired users — for example via email — to inform them about alternative pricing options.
In a press briefing, EU antitrust chief Margrethe Vestager qualified the basic amount of the fine for Apple, excluding the 1.8 billion euro lump sum, as “quite small” and likened it to a “speeding ticket, or a parking ticket” relative to the company’s scale.
“When Apple imposes these anti-steering provisions on the music provider, they as developers have no other choice than to either accept them or abandon the App store. Apple with its App Store currently holds a monopoly,” Vestager said.
She added the commission has ordered Apple to remove the so-called anti-steering provisions and to “refrain from similar practices in the future.”
EU scrutiny on tech giants rises
The fine will ramp up tensions between Big Tech and Brussels at a time when the EU is increasing scrutiny of these firms.
Last year, the commission designated Apple among other tech firms like Microsoft and Meta as “gatekeepers” under a landmark regulation called the Digital Markets Act, which broadly came into effect last year.
The term gatekeepers refers to massive internet platforms which the EU believes are restricting access to core platform services, such as online search, advertising, and messaging and communications.
The Digital Markets Act aims to clamp down on anti-competitive practices from tech players, and force them to open out some of their services to other competitors. Smaller internet firms and other businesses have complained about being hurt by these companies’ business practices.
These laws have already had an impact on Apple. The company announced plans this year to open up its iPhone and iPad to alternative app stores other than its own. Developers have long complained about the 30% fee Apple charges on in-app purchases.
Vestager fired a warning shot to Apple in regard to the DMA.
“In a couple of days on the 7th of March, Apple will have to comply with the full list of dos and don’ts under the DMA. Among others, Apple can no longer impose rules such as the anti-steering obligations … and this holds for any app on the App Store, not just music streaming apps.”
— CNBC’s Ryan Browne and Ruxandra Iordache contributed to this article.
Close-up of a hand holding a cellphone displaying the Amazon Pharmacy system, Lafayette, California, September 15, 2021.
Smith Collection | Gado | Getty Images
Amazon is expanding its online pharmacy to fill prescription pet medications, the company announced Thursday.
The company said it has added “hundreds of commonly prescribed pet medications” to its U.S. site, ranging from flea and tick solutions to treatments for chronic conditions.
Prescriptions are purchased via Amazon’s storefront and must be approved by a veterinarian. Online pet pharmacy Vetsource will oversee the dispensing and delivery of medications, said Amazon, adding that items are typically delivered within two to six days.
Amazon launched its digital drugstore in 2020 with the added perk of discounts and free delivery for Prime members. The company has been working to speed up prescription shipments over the past year, bringing same-day delivery to a handful of U.S. cities. Last October, Amazon set a goal to make speedy medicine delivery available in nearly half of the U.S. in 2025.
The new pet medication offerings puts Amazon into more direct competition with online pet pharmacy Chewy, as well as Walmart, which offers pet prescription delivery.
Amazon Pharmacy is part of the company’s growing stable of healthcare offerings, which also includes One Medical, the primary care provider it acquired for roughly $3.9 billion in July 2022. Amazon’s online pharmacy was born out of the company’s 2018 acquisition of online pharmacy PillPack.
Whoop member wears the new device.
Courtesy of Whoop
Whoop on Thursday announced two new wearable devices, Whoop 5.0 and Whoop MG, which feature sleeker hardware, a longer battery life and additional in-app health insights.
Both of the company’s new devices are designed for 24/7 wear.
The Whoop 5.0 and Whoop MG support 14 days of battery life, which is around triple the four-to-five-day range offered by Whoop 4.0. The new hardware is also 7% smaller than the previous device, with a processor that’s 60% faster, the company said.
“We’ve taken everything we’ve learned over the past decade and built a platform to help our members perform and live at their peak for longer,” Whoop founder and CEO Will Ahmed said in a release.
The launch marks Whoop’s first major hardware update since 2021, when the company released Whoop 4.0. Whoop said its new devices will help users understand how their daily decisions impact their performance and health outcomes over time, according to a release.
Cost and tiers
There are three annual membership tiers: Whoop One, which costs $199 and includes the Whoop 5.0; Whoop Peak, which costs $239 and includes the Whoop 5.0; and Whoop Life, which costs $359 and includes the Whoop MG. Accessories like additional bands will come at an extra cost.
Whoop 5.0 and Whoop MG memberships and accessories are available for purchase online starting on Thursday.
Whoop’s new membership options.
Whoop
Whoop One members will be able to use their Whoop 5.0 to measure sleep, strain and recovery, as well as the cardiovascular and muscular impact of various workouts. Users can also track their menstrual cycles and pregnancies.
Whoop Peak builds on those core metrics. Members have access to a Health Monitor feature, which provides a quick look at vitals like respiratory rate, heart rate, blood oxygen, and skin temperature. Whoop Peak also supports a real-time stress monitor, where users can see their stress level and complete guided breathing sessions if they’d like to increase relaxation or alertness.
The company also unveiled a feature called Healthspan, which uses nine metrics to calculate adult users’ Whoop Age and Pace of Aging. A user’s Whoop Age compares their physiological age to their actual age, and Pace of Aging assesses how fast or slow someone is aging based on their behavior.
The Healthspan feature is updated every week, and users will get tips about how they can improve their Whoop Age and Pace of Aging in their app. Whoop developed this feature in partnership with the Buck Institute for Research on Aging, the company said.
The most comprehensive membership is Whoop Life, which will give users access to additional medical-grade health features with Whoop MG.
Whoop Life members can record an electrocardiogram, or an ECG, to detect irregular heart rhythms like AFib, high heart rate or low heart rate. Once the reading is complete, they can share a PDF of the recording with their doctor.
The ECG feature has been cleared by the U.S. Food and Drug Administration. It’s not intended for users under 22 years old, or for users with a cardiac pacemaker or other implanted devices. It will be available in the U.S., the UAE and Qatar at launch, with additional countries coming soon.
Whoop Life members can also get daily insights about their blood pressure, including estimated systolic and diastolic ranges. Users will have to log a traditional cuff-reading to act as a baseline to unlock this feature, and it’s not intended for treatment, diagnosis or medical use.
Whoop said Blood Pressure Insights has been in development for several years, and the feature is currently in beta.
Quick takeaways
Ashley Capoot wearing Whoop MG
Ashley Capoot
I got a sneak peek at the Whoop MG, and I’ve been wearing it for the past few days. I can’t speak to what it’s like to wear the device over an extended period, but my initial experience has been largely positive.
From a hardware standpoint, the Whoop MG looks and feels sleeker than the Whoop 4.0, which I tested out in April. The actual sensor is roughly an inch wide, and the band is slightly thinner than that. I’ve found that both the Whoop MG and the Whoop 4.0 are a little hard to take off — you really have to tug on the latch.
The Whoop MG’s setup is very straightforward, and I was up and running on the app in a matter of minutes. With all the new features, there’s a lot of additional data to make sense of, so the app seemed pretty busy to me at first. I felt like I had a better handle on it after a few hours, though, and I haven’t felt pressure to constantly monitor it.
Of the new features, I thought Healthspan was particularly interesting. As a relatively healthy 24-year-old, I noticed I still felt relieved to be “younger” than my age. I’d be curious to see how that feature would change based on my behaviors from week to week.
I also liked the Whoop MG’s detailed sleep tracking and the real-time stress monitor, as stress is something I’ve personally been trying to be more mindful of. I’ve learned that my stress levels really skyrocket while I’m taking public transport, for instance, and adjust accordingly.
After about a dozen tries, I wasn’t able to log a successful ECG reading. I kept getting errors, even after switching wrists and the positioning of my arms. That’s been disappointing, as I’m interested to see my results. The Blood Pressure Insights are neat, and assuming other users can successfully record ECG readings, it’s easy to see the potential benefit. That said, I don’t think I need those features in my daily life yet, so the Whoop Life membership probably wouldn’t be the right pick for me.
I’m not totally sold on the Whoop MG’s aesthetics. I have small hands and wrists, so I always feel like smart devices tend to look clunky on me.
I definitely felt like the Whoop 4.0 was too big for me, but the Whoop MG doesn’t bother me quite as much. That’s just my personal taste, and there are lots of Whoop accessories you can buy to spiff up the device for different occasions.
After just a few days, there’s a lot I can still learn from the Whoop MG, but I feel like I’d personally reach for the Whoop 5.0. The range of membership options helps ensure that users don’t have to break the bank, so I’d feel comfortable recommending Whoop 5.0 and Whoop MG to my friends and family. And for existing Whoop customers who are thinking about an upgrade, the extended battery life alone is worth considering.
WATCH: CEO of fitness tracker company Whoop on $3.6 billion valuation, outlook
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