The European Union’s chief regulator, the European Commission, is reportedly set to fine US tech giant Apple €500 million for violating its antitrust laws in the music streaming sector. An announcement of the fine is expected to be made next month.
An investigation launched in 2019 revealed Apple violated the EU’s antitrust laws in the music streaming sector. Spotify accused Apple of forceful tactics related to the App Store, which resulted in the streaming service having to escalate the cost of monthly subscriptions to cover their expenses. Apple imposes a 30% commission for transactions conducted through its system, leading third-party developers to increase their service prices. Additionally, Apple was found to withhold user information on alternative streaming services, stripping them of cheaper alternatives.
The European Commission determined Apple’s actions as anti-competitive and violative of EU laws. The regulator is expected to accuse Apple of exploiting its dominating position in the iOS device segment to impose its terms on competitors. This would be the first penalty of this kind for Apple in the EU. As per EU laws, the American company could face a penalty of up to 10% of its annual turnover.
