The European Commission is set to hit Apple with a massive €500 million fine following an antitrust probe into its treatment of rival music streaming apps, reports the Financial Times.
Following a complaint from Spotify in 2019, the EU began investigating whether Apple was using its platform to favour its own music streaming service over those of competitors.
The Commission will say Apple's actions are illegal and go against the bloc's rules that enforce competition in the single market, the people familiar with the case told the Financial Times. It will ban Apple's practice of blocking music services from letting users outside its App Store switch to cheaper alternatives. Brussels will accuse Apple of abusing its powerful position and imposing anti-competitive trading practices on rivals, the people said, adding that the EU would say the tech giant's terms were "unfair trading conditions".
Apple has never been fined by the EU for anticompetitive behaviour; however, it has been forced to make significant changes to app store operations in the EU to comply with the new Digital Markets Act. Notably, the company has been accused of making those changes in bad faith with the Coalition for App Fairness calling Apple's compliance plan a 'shameless insult'. The EU has yet to decide if Apple's changes are sufficient, but it will likely issue a statement before the DMA goes into force next month.
It's unclear when the EU will announce this €500 million fine; however, Apple will certainly appeal when it does. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for further updates.
Following a complaint from Spotify in 2019, the EU began investigating whether Apple was using its platform to favour its own music streaming service over those of competitors.
The Commission will say Apple's actions are illegal and go against the bloc's rules that enforce competition in the single market, the people familiar with the case told the Financial Times. It will ban Apple's practice of blocking music services from letting users outside its App Store switch to cheaper alternatives. Brussels will accuse Apple of abusing its powerful position and imposing anti-competitive trading practices on rivals, the people said, adding that the EU would say the tech giant's terms were "unfair trading conditions".
Apple has never been fined by the EU for anticompetitive behaviour; however, it has been forced to make significant changes to app store operations in the EU to comply with the new Digital Markets Act. Notably, the company has been accused of making those changes in bad faith with the Coalition for App Fairness calling Apple's compliance plan a 'shameless insult'. The EU has yet to decide if Apple's changes are sufficient, but it will likely issue a statement before the DMA goes into force next month.
It's unclear when the EU will announce this €500 million fine; however, Apple will certainly appeal when it does. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for further updates.