Apple has faced scrutiny from European Union regulators, and it is gearing up for compliance with the EU’s Digital Markets Act. However, the EU is set to fine Apple €500 million (or $539 million) in a prior dispute over anti-competitive practices relating to music streaming services. The Verge first reported that the EU determined early last year that Apple had broke antitrust law, but that a final ruling and potential fines were still pending. Now, almost a year later, the Financial Times reports that the EU is preparing to issue Apple a $539 million fine for the dispute.
Spotify, the music streaming service that competes with Apple Music, argued that Apple used unfair practices to bolster its own streaming service. Spotify issued a complaint to the EU in 2019, and the regulatory body opened up an investigation the following year. Apple previously used “anti-steering” practices in iOS and the App Store, which caused the dispute. These policies prevented streaming apps like Spotify from linking to their own payment systems. By doing so, apps could avoid Apple’s 30% fee on in-app purchases and subscriptions.
Apple has since shifted its stance on anti-steering policies. The change, in part, was due to pressure from regulators like Japan and the EU. However, the EU still found that Apple broke antitrust law before the change. As such, the governmental body has been mulling its options. According to multiple reports, it will end with a $539 million fine being sent Apple’s way.
What Apple is saying about the EU’s $539 million fine
Apple declined to comment in response to an inquiry from The Verge about the news. A spokesperson, Emma Wilson, said Apple is “not commenting on speculation.” However, Apple has commented on the investigation in the past.
“We’re pleased that the Commission has narrowed its case and is no longer challenging Apple’s right to collect a commission for digital goods and require the use of the In-App Payment systems users trust,” said Apple spokesperson Hannah Smith in a Feb. 2023 statement to The Verge. “The App Store has helped Spotify become the top music streaming service across Europe and we hope the European Commission will end its pursuit of a complaint that has no merit.”
Despite the company’s claim that the case “has no merit,” it looks like the EU will still fine Apple a total of $539 million. However, it’s still easy to see this as a win for Apple. As the company’s representative Smith explained, the EU dropped a few other aspects of the complaint, focusing on anti-steering instead. Plus, for a company the size of Apple, $539 million isn’t all that much. It does continue Apple’s constant legal struggles in the region, though.
2024-02-21 15:07:09