According to sources, Apple is set to be given an EU antitrust penalty of approximately 500 million euros ($543 million) next week in a music streaming case initiated by Spotify, opening a new tab complaint.
Apple is poised to receive a fine from the European Commission for allegedly preventing music streaming competitors like Spotify from informing users of alternative subscription options outside of the Apple App Store.
The European Union’s competition watchdog views these “anti-steering obligations” as unfair trading conditions, signaling a novel argument in an antitrust case. The situation mirrors similar allegations against Meta Platforms in a separate case.
Impending Fine and Regulatory Action
Sources indicate that Apple is expected to be fined by March 5, pending final approval from EU antitrust chief Margrethe Vestager. The precise amount of the fine and the timing remain subject to change.
Additionally, the EU is anticipated to order Apple to cease these practices, aligning with upcoming Digital Markets Act (DMA) regulations, which Apple and other tech giants must comply with starting March 7.
Comparative Fines and Regulatory Scrutiny
While the impending fine against Apple is intended as a deterrent, it is notably smaller compared to the billion-euro fines levied against Google in previous EU antitrust cases.
Separately, the European Commission is investigating Apple’s decision to remove home screen web apps for EU users, a move purportedly made to adhere to DMA regulations.
This scrutiny extends to Progressive Web Apps, which enable developers to sell subscriptions through their websites, bypassing Apple’s App Store fees.
Continued Monitoring and Compliance
Assessment
The European Commission’s ongoing assessment of Apple’s compliance with DMA requirements involves soliciting information from both Apple and app developers.
This comprehensive review aims to ensure that all relevant parties adhere to regulations and foster fair competition within the digital marketplace.