• The European Union is set to fine Apple around 500 million euros for alleged violations of EU law in the music streaming services sector, marking its first-ever fine against the tech giant.
  • The fine stems from an antitrust investigation into whether Apple unfairly favored its own services and prevented developers from informing users of cheaper subscription options outside the App Store.
  • Apple’s response includes modifications to its iOS software, App Store, and Safari browser, but Spotify argues that these actions are insufficient and calls for an end to what it perceives as baseless accusations.

According to the Financial Times, the European Union is set to levy its first-ever fine against tech giant Apple for alleged violations of EU law in the music streaming services sector. The basis of this ruling stems from the EU’s antitrust investigation into Apple, including whether Apple unfairly favoured its own services on its platform and prevented its app developers from informing iPhone users of cheaper music subscription services outside the App Store.

Sources reveal that the fine of 500 million euros is expected to be announced early next month, with EU commissioners publicly stating that Apple has violated EU competition rules in the single market. Apple is accused of abusing its monopoly position, engaging in anti-competitive practices against competitors, and preventing its users from accessing alternatives cheaper than the App Store.

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This is the largest economic penalty imposed by the EU

This marks one of the largest economic penalties imposed by the EU on major tech companies, similar to the series of fines totalling 8 billion euros against Google, which is still under appeal in court. Apple has never before been fined by the EU for antitrust violations, but the company was fined 1.1 billion euros in France in 2020 for alleged anti-competitive behaviour, which was reduced to 372 million euros after appeal.

The punishment for Apple will prompt major tech companies in the EU to demonstrate how they fully comply with the Digital Markets Act and allow their smaller tech competitors to thrive. Specifically, large companies like Apple, Amazon, and Google are required to fully comply with this rule by early next month and share relevant service information with their competitors.

Apple has made modifications

In response to the EU’s allegations, Apple announced last month modifications to its iOS mobile software, App Store, and Safari browser. However, Spotify argues that Apple’s compliance is a complete farce, as the App Store has helped Spotify become the top music streaming service in Europe, and the EU Commission should cease unfounded accusations.