Tech giant Apple is set to be hit with a €500 million (approximately $539 million) fine by European Union regulators, according to a report in the Financial Times. This hefty penalty stems from an antitrust investigation triggered by a complaint filed by music streaming service Spotify in 2019.
The issue boils down to Apple’s App Store policies, specifically the company’s restrictions on developers informing users about alternative subscription options outside the App Store ecosystem. Spotify argued that these policies unfairly advantage Apple Music by stifling competition.
The EU investigation initially considered a much harsher fine, potentially reaching $40 billion (10% of Apple’s global turnover). However, the final figure of $539 million still signifies a significant blow to Apple, particularly after a similar antitrust fine of over a billion dollars in 2020 was scaled down to $366 million on appeal.
Apple maintains that the accusations are unfounded and refuses to comment on the speculation. The company previously argued that the EU’s case lacks merit and hoped for a dismissal. Meanwhile, Spotify has yet to respond to inquiries about the fine.
This development represents another chapter in the ongoing saga surrounding Apple’s App Store policies and their potential anti-competitive nature. The EU’s decision to impose a hefty fine could set a precedent for future regulations aimed at promoting fairer competition within the digital marketplace.