Apple Facing €500 Million Fine Over Alleged EU Law Violations in Music Streaming Service Dispute
ICARO Media Group
Apple is bracing itself for a hefty €500 million ($538 million) fine after reportedly breaching EU law concerning access to music streaming services. Following an investigation initiated by the European Commission in 2019 prompted by an antitrust complaint filed by Spotify, Apple has come under fire for its policy of restricting streaming music apps from informing iPhone and iPad users about lower subscription prices available outside the App Store.
The focus of the investigation has honed in on Apple's alleged anti-competitive behavior by preventing streaming apps from promoting alternative, cheaper subscription options within their apps. The investigation, which commenced in 2019, progressed to formal charges against Apple in 2021, and a narrowed focus was established by the Commission last year, dropping a charge related to developers being pushed to use Apple's own in-app payment system.
According to a Financial Times report, the Commission is set to issue a ruling declaring Apple's actions as illegal and in violation of the bloc's competition regulations. The Commission is expected to ban Apple from continuing its practice of prohibiting music services from redirecting users outside the App Store to avail of lower-priced alternatives, a move that has allegedly given Apple Music an unfair advantage in the market.
The culmination of the investigation is anticipated to affirm the Commission's preliminary stance that Apple's policies constitute "anti-steering" and unfair trading conditions, contravening EU antitrust laws. The Commission has expressed concerns that these rules could result in higher costs for users and limit choice for music streaming app developers.
Notably, Apple has not previously faced fines for antitrust violations from the EU; however, in 2020, it was fined €1.1 billion ($1.19 billion) in France for alleged anti-competitive practices. Following an appeal by Apple, the penalty was reduced to €372 million.