EU to Imposes Landmark Fine of €500 Million on Apple Over Music Streaming Practices

The European Union is poised to levy a staggering €500 million penalty against Apple for purportedly impeding access to music streaming services, marking a significant setback for the American tech giant.

The European Commission is scrutinizing whether Apple obstructed music streamers from informing users about alternative, more cost-effective subscription options available outside its app store, where it commands a sizable portion of revenues.

Brussels is intent on imposing the hefty fine, signaling a pivotal ruling against Apple following years of grievances from companies whose services are channeled through iPhone apps.

In 2019, Swedish streaming titan Spotify lodged a complaint with the EU, alleging that Apple stifles competition within its app store by imposing a 30% levy on all transactions. Additionally, Apple purportedly prohibited Spotify and other entities from notifying customers via their devices about the possibility of bypassing the commission and securing a better deal by subscribing directly through Spotify’s website.

While Apple contends that its fee is warranted due to extensive investments in maintaining a secure app store and granting Spotify access to hundreds of millions of users, Spotify contends that Apple Music, Apple’s proprietary streaming service, evades the same financial burden, conferring an unfair advantage and rendering the fees anti-competitive.

While the European Commission declined to offer commentary, Apple refrained from issuing a fresh statement, reiterating its commitment to addressing the commission’s concerns “while fostering competition and choice for European consumers.”

Notably, Apple has never before been subject to a competition penalty from the European Commission, although it was fined €1.1 billion by France in 2020, later reduced to approximately €370 million on appeal, for engaging in anti-competitive agreements with two wholesalers.

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