Apple Inc. will face a European Union penalty close to €500 million ($539 million) over the regulator’s probe into accusations it silenced music-streaming competitors, including Spotify Technology SA, on its platforms.
The European Union (EU) has issued a penalty to Apple, marking its first-ever fine against the tech giant from the bloc.
The fine, yet to be determined, comes after EU regulators found Apple in violation of competition rules by obstructing rival music services from informing users about cheaper alternatives outside of its App Store, according to sources familiar with the matter.
Apple’s Response and EU’s Strategy
Apple, in response to inquiries, referred to a previous statement highlighting the role of the App Store in Spotify’s success.
Also read: Spotify launches “streaming classics” program: celebrating albums of the streaming era
EU competition chief Margrethe Vestager has been actively pursuing actions to challenge the dominance of Big Tech companies in the bloc through fines and regulatory measures.
Notably, Google has faced penalties exceeding €8 billion, and Apple was previously ordered to repay €13 billion in alleged unfair tax benefits from Ireland.
Previous Fines and Investigations
Apple has also faced fines from individual EU member states, such as the €1.1 billion penalty in France in 2020 for anti-competitive behavior, later reduced to €372 million after an appeal.
The EU’s investigation into Apple’s App Store practices stemmed from a complaint by Spotify nearly four years ago, alleging that Apple’s control over the store led to increased subscription prices for Spotify to cover associated costs.
Settlement Proposal and Future Actions
In a closed-door meeting last year, Apple informed EU regulators that it had addressed potential competition concerns related to Spotify’s complaint.
Additionally, in a separate probe, Apple is expected to have its settlement proposal accepted regarding the EU’s investigation into its tap-and-pay technology.
Implications and Next Steps
The EU’s actions against Apple underscore ongoing efforts to regulate and challenge the practices of major technology companies within the bloc.
As investigations continue and fines are imposed, the landscape of digital competition and regulation in Europe may undergo significant changes.