Spotify to make Apple Music pay a fine of $500+ because Apple did what Apple does
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Key notes
- EU to fine Apple €500 million for allegedly hindering competition in music streaming.
- Accusations focus on Apple preventing rivals from informing users about cheaper options outside its App Store.
- Fine marks first EU antitrust penalty against Apple and aligns with a broader crackdown on big tech.
- Apple maintains innocence and can appeal the decision, while new EU regulations aim to level the playing field.
The European Commission is set to fine Apple €500 million (approximately $539 million) for alleged anti-competitive practices in the music streaming market, according to a report by the Financial Times. This would be the first antitrust fine imposed on Apple by the EU.
The investigation originated from a 2019 complaint filed by Spotify, which accused Apple of favoring its own Apple Music service by hindering third-party music streaming apps on its devices. Specifically, the EU contends that Apple’s App Store rules prevented these apps from informing users about cheaper subscription options outside the App Store.
Apple’s App Store requires companies like Spotify to use its billing system, which takes a cut of up to 30% on all in-app purchases. This practice has been long criticized by smaller tech firms and competitors who argue it stifles competition and unfairly advantages Apple’s services, which we have discussed here in detail.
The reported fine comes amid a broader EU push to regulate big tech companies and address concerns about anti-competitive practices. The recently enacted Digital Markets Act aims to level the playing field by requiring companies like Apple to allow alternative app stores and direct billing on their devices.
Apple has made some adjustments to comply with EU regulations, including allowing developers to distribute apps through alternative stores in the EU. However, the company maintains its innocence and can appeal the EU’s decision.
This development marks a significant step in the EU’s efforts to regulate big tech and ensure fair competition in the digital market. The tech industry and consumers alike will closely watch the outcome of this case and Apple’s potential appeal.
More here.
