The European Commission, the primary regulatory authority of the European Union, is reportedly gearing up to impose a €500 million fine on Apple for breaching antimonopoly legislation within the EU’s music streaming sector. This penalty, the first of its kind for Apple in the European Union, is expected to be officially announced next month.
Apple’s Antitrust Violations Unveiled During 2019 Investigation
The violation of EU antitrust laws by Apple in the realm of music streaming came to light during a comprehensive investigation initiated in 2019. Spotify had accused Apple of inflating monthly subscription prices due to the App Store policies, which mandated a 30% commission on payments made through its system. This compelled third-party developers to hike their service costs. Furthermore, it was revealed that Apple did not adequately inform users about alternative, potentially more affordable, streaming services, restricting user choice, notes NIX Solutions.
EU Commission Alleges Anti-Competitive Practices and Market Dominance Abuse
The European Commission asserts that Apple’s actions were anti-competitive and contravened existing legislation in the European Union. Specifically, the regulator alleges that Apple exploited its dominant position in the iOS device segment to impose unfavorable terms on its competitors. Under EU law, Apple could face a fine of up to 10% of its annual turnover.