Apple to face an EU fine close to EUR 500 million after EU finds out that it broke rules to silence Spotify and other rivals. Strong allegations by the EU suggest that Apple allegedly silenced music-streaming rivals like Spotify Technology SA on its platforms.
Pending the next decision, Apple will be slammed with its first EU penalty after the EU watchdog determined that it violated competition laws by preventing rival music services from telling users of cheaper alternatives outside of its App Store, according to sources.
Apple claimed in a recent statement that the App Store has helped Spotify become the top music streaming service across Europe. The EU Commission declined to comment. The Financial Times reported the fine previously.
Margrethe Vestager’s main goal is to destroy Big Tech’s dominance in the EU through penalties and regulations. Google was fined over EUR 8 billion, and Apple was ordered to refund EUR 13 billion in allegedly improper tax advantages from Ireland.
Also see: India may block Proton Mail according to reports
EU member states have also pressured Apple. It was fined EUR 1.1 billion in France in 2020 for anti-competitive activities, although the total was later lowered to EUR 372 million after an appeal.
The EU’s probe of Apple’s App Store began nearly four years ago when Spotify complained that Apple’s purported grip on the App Store drove it to raise its monthly membership prices.
Margrethe Vestager, the EU’s competition chief, has made it a priority to use penalties and regulatory measures to try and undermine Big Tech’s hegemony within the EU. She has ordered Apple to reimburse EUR 13 billion in suspected unlawful tax advantages from Ireland and fined Alphabet’s Google more than EUR 8 billion.
Apple has also been subject to pressure from several European Union members. For engaging in anti-competitive behavior, it was fined EUR 1.1 billion in France in 2020; however, following an appeal, the total amount was subsequently lowered to EUR 372 million.
Spotify filed a complaint almost four years ago that it was obliged to increase the price of its monthly subscriptions to cover costs related to Apple’s purported grip over how the App Store functions, which prompted the EU to launch an investigation into Apple’s App Store.
When Apple and EU authorities met behind closed doors in June of last year, the tech company informed regulators that it had already taken care of any potential competition issues brought up by Spotify’s complaint.
According to persons familiar with the situation, Apple is expected to have its settlement offer approved in the EU’s inquiry into its tap-and-pay technology in a different examination.
Also see: OpenAI Introduces Sora Which can generate videos
The persons, who asked not to be named because the topic is confidential, claimed that the commission is ready to approve Apple’s 10-year offer to allow rival digital wallets access to the coveted near-field communication chip on iPhones. This comes after a market test garnered an overwhelmingly good reaction.
Following official concerns from the EU authority that Apple had allegedly abused its market position by restricting access to the technology, the corporation moved to settle the case.
Vestager is currently preparing for the bloc’s principal Digital Markets Act to be put into effect on March 7. The comprehensive new regulations aim to stop internet companies from violating competition laws before they have a chance to spread.
Just like Apple to face an EU fine close to EUR 500 million, the most powerful companies will not be allowed to prioritize their services over competitors’ under the DMA. They’ll have to let customers download apps from other platforms, won’t be allowed to combine personal data from third-party merchants to compete with them, and can’t combine data from any of their services together.
