In a landmark move, the European Commission (EC) is expected to announce early next month that Apple will be fined approximately 500 million euros ($539 million). This decision comes after an extensive investigation into allegations that Apple used its App Store policies to unfairly restrict competition and favor its own music streaming service, Apple Music, over competitors such as Spotify. The Financial Times, citing unnamed sources familiar with the matter, first reported this development.
The investigation was sparked by a formal complaint from Spotify in 2019. The music streaming giant accused Apple of leveraging its control over the App Store to stifle competition by preventing apps from informing users about cheaper subscription options available outside of Apple's ecosystem. According to reports, the European Commission will accuse Apple of creating "unfair trading conditions" for its rivals by enforcing what are known as "anti-steering obligations" within the App Store.
This fine marks one of the most substantial financial penalties imposed by the EU on major technology companies. It highlights the growing scrutiny and regulatory pressure faced by Big Tech firms in Europe regarding their market practices. Previously, Google has been hit with fines totaling around €8 billion over several years for various antitrust violations, though these are currently being contested in court.
While this would be Apple's first antitrust fine from Brussels, it is not unfamiliar with regulatory penalties. In 2020, France imposed a €1.1 billion fine on Apple for alleged anti-competitive behavior; however, this penalty was later reduced to €372 million upon appeal. The impending EU ruling underscores Brussels' commitment to ensuring fair competition in the digital marketplace and signals potential future challenges for tech giants operating within its jurisdiction.
Apple has yet to officially respond to these reports but has previously defended its App Store policies as promoting healthy competition and helping services like Spotify thrive. However, with regulators increasingly focused on dismantling Big Tech's dominance through fines and regulatory actions, companies like Apple may need to reassess their business practices in Europe's tightly regulated market.