Apple Faces €500 Million EU Fine in Spotify Dispute
Apple is facing a potential €500 million fine from the EU over allegations of anti-competitive behavior. The investigation was triggered by a complaint from Spotify, claiming that Apple's control over the App Store hindered competition. Apple has assured regulators that it has addressed any concerns, but the investigation proceeded.
Apple Inc. is set to receive a hefty fine of nearly €500 million (US$539 million) from the European Union (EU) over allegations of anti-competitive behavior in relation to its treatment of music-streaming rivals, including Spotify Technology SA. This will mark Apple's first-ever fine from the bloc, as the regulator found that the tech giant violated competition rules by preventing rival music services from informing users about cheaper alternatives outside of its App Store.
The European Commission, which conducted the investigation, has not commented on the matter, while Apple referred to a previous statement highlighting the role of the App Store in Spotify's success as the top music streaming service in Europe. The fine was initially reported by the Financial Times.
The EU's probe into Apple's App Store was triggered by a complaint filed by Spotify nearly four years ago. Spotify alleged that it was forced to increase the price of its monthly subscriptions to compensate for the costs associated with Apple's alleged control over the App Store's operations.
In a closed-door meeting between Apple and EU officials last year, the tech giant assured regulators that it had already addressed any potential competition concerns arising from Spotify's complaint. However, the EU's investigation proceeded, leading to the impending fine.
In a separate investigation, Apple is expected to have its settlement proposal accepted by the EU regarding its tap-and-pay technology. The proposal involves granting access to the near-field communication chip on iPhones to rival digital wallets. The acceptance of this proposal follows a positive market test and is seen as a step towards resolving the EU's concerns about Apple's alleged restriction of access to this technology.
The EU's competition chief, Margrethe Vestager, has been actively pursuing actions against major tech companies to challenge their dominance in the market. She has previously fined Google over €8 billion (US$8.6 billion) and ordered Apple to repay €13 billion in alleged unfair tax breaks from Ireland.
Vestager's regulators are now preparing for the enforcement of the Digital Markets Act (DMA), which is set to take effect on March 7. The DMA aims to prevent competition violations by tech firms before they become entrenched. Under the new rules, powerful companies will be prohibited from favoring their own services over those of rivals, combining personal data across different services, and using data collected from third-party merchants to compete against them. Additionally, users will have the freedom to download apps from rival platforms.
Apple is facing a potential €500 million fine from the EU over allegations of anti-competitive behavior.
The investigation was triggered by a complaint from Spotify, claiming that Apple's control over the App Store hindered competition.
Apple has assured regulators that it has addressed any concerns, but the investigation proceeded.
Source: YAHOO