Reports suggest that the European Commission is gearing up to levy a hefty fine of around 500 million euros against Apple.
The tech giant stands accused of violating EU competition laws, particularly in its treatment of third-party music services on its devices.
The Commission initiated an investigation after Spotify lodged a formal complaint in 2019. Allegations centered on Apple’s alleged favoritism towards its own Apple Music service, purportedly hindering competitors.
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One major bone of contention is Apple’s App Store rules, which often force companies like Spotify to use Apple’s billing service for subscriptions, thereby incurring a significant cut.
The investigation, which formally charged Apple in 2021, honed in on whether the company restricted apps from informing users about cheaper subscription options outside of its ecosystem, thus potentially stifling competition.
Sources close to the matter revealed to Financial Times that the Commission is gearing up to accuse Apple of abusing its dominant market position and imposing unfair trading conditions.
If the fine is imposed, it would mark one of the largest penalties imposed by the EU on a major tech company, following previous hefty fines levied against Google. Notably, this would be Apple’s first such fine from Brussels.
The reported fine comes amidst a broader EU crackdown on big tech, with the Digital Markets Act slated for enactment in March. This legislation aims to curb anti-competitive practices among tech giants like Apple, Amazon, and Google, ensuring a more level playing field for smaller internet firms and tech businesses.
Apple has already begun making adjustments to comply with EU regulations, announcing changes to its iOS, Safari, and App Store in the region.
However, this is not the only antitrust case Apple faces; the European Commission is also scrutinizing its restrictions on rivals accessing its Apple Pay mobile system.
Despite the looming fine, Apple retains the right to challenge the decision in EU courts. The tech giant declined to comment specifically on the report but expressed satisfaction with the narrowed focus of the probe in previous statements.
As the EU continues its antitrust investigation, the tech industry braces for potential repercussions, with Apple at the forefront of the regulatory storm.