Apple is poised to receive a nearly €500 million fine from the EU over Spotify dispute.
Apple Inc. is expected to receive a fine of nearly €500 million ($539 million) from the European Union for allegedly stifling competition from music-streaming rivals like Spotify Technology SA on its platforms.
The penalty — Apple’s first on the block — comes after an EU watchdog found it broke competition rules to block rival music services by telling users there were cheaper options outside its App Store, according to people familiar with the matter. .
When contacted for comment, Apple referred to an earlier statement that “the App Store has helped Spotify become the most popular music streaming service in Europe.” The European Commission declined to comment. The Financial Times reported on the fine earlier.
The EU’s investigation into Apple’s App Store was sparked by Spotify’s complaint nearly four years ago, which claimed it was forced to raise the prices of its monthly subscriptions to cover costs related to Apple’s alleged stranglehold on the App Store.
In a closed-door meeting between EU officials and Apple in June last year, the tech company told regulators it had already addressed potential competition concerns arising from Spotify’s complaint.
In a separate investigation, Apple is set to accept its proposed settlement in an EU probe into its tap-and-pay technology, according to people familiar with the matter.
The commission is poised to accept Apple’s 10-year bid to open up access to the coveted near-field communications circuit in iPhones to rival digital wallets after a market test drew largely positive feedback, according to the people, who asked not to be identified. because the matter is private, said.
Apple decided to settle the case after the EU watchdog earlier expressed formal concerns that the company had restricted access to the technology, amounting to an alleged abuse of market power.
EU competition manager Margrethe Vestager has made it her core strategy to try to dismantle Big Tech’s dominance in the bloc. He has slapped Alphabet Inc’s Google with more than 8 billion euros ($8.6 billion) in fines and also ordered Apple to pay back 13 billion euros in allegedly unfair tax breaks from Ireland.
His regulators are now poised to implement the bloc’s flagship Digital Markets Act, which comes into effect on March 7. The sweeping new rules aim to prevent antitrust violations by tech companies before they take root.
According to the DMA, it is illegal for the most efficient companies to favor their own services over those of their competitors. They must not combine personal data across their services, they must not use data they collect from third-party merchants to compete against them, and they must allow users to download apps from competitors.
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