The European Union is reportedly gearing up to levy a hefty fine of approximately $539 million (500 million euros) against tech giant Apple, along with potentially imposing restrictions on its alleged anti-competitive practices within the realm of music streaming services on its App Store. The revelation, as reported by the Financial Times, stems from insights provided by five undisclosed sources familiar with the ongoing investigation. It is anticipated that the European Commission will officially unveil its decision early in the coming month.
The investigation was instigated following a formal antitrust complaint lodged by Spotify in 2019. The focal point of scrutiny revolves around Apple’s App Store policies, particularly those in place at the time, which purportedly prohibited app developers from steering users to alternative subscription avenues external to the app itself. Such external options could potentially offer more cost-effective subscription rates as they would be exempt from Apple’s standard 30 percent commission fee. Although Apple subsequently relaxed these regulations, the European Commission is poised to assert that Apple violated EU antitrust regulations, resulting in the creation of what it deems to be “unfair trading conditions” for competitors due to the App Store’s imposition of anti-steering obligations.
