Apple faces a €500m (£427m) fine for unfairly influencing competitors in the music streaming market, according to the Financial Times. The European Commission, the EU’s executive arm, will impose the penalty following an extensive investigation.
Why is Apple facing the prospect of fines?
After Spotify filed complaints in 2019, the EU began examining Apple’s position in the music streaming app market. The focus was narrowed down to specific restrictions placed by Apple on app developers, preventing them from informing iPhone and iPad users about more affordable music subscriptions outside of the App Store. Spotify claims this favors Apple Music, the company’s rival app.
This case is the latest in a series of legal disputes involving Apple’s App Store, which has been criticized by the companies utilizing it for its rules and charges. Apple recently announced that it would allow EU customers to download apps without going through its own store, a concession made under pressure from the EU’s Digital Markets Act (DMA).
What does the EU think about Apple’s actions?
The EU did not comment directly, but when Apple issued a new statement of objection in February of the previous year, it suggested that the company would be penalized for unfair trading conditions violating Article 102 of the Treaty on the Functioning of the European Union. The Commission expressed concerns that the restrictions can prevent developers from informing consumers about affordable streaming service subscriptions.
What happens next?
The Financial Times reported that the Commission will announce the fine in the early part of the next month. The maximum fine for anti-competitive behavior is 10% of global turnover, which, in Apple’s case, could be up to $30bn (£24bn), although the final amount is expected to be lower. Apple may appeal the Commission’s decision.
What are Apple and Spotify saying?
Apple and Spotify declined to comment on Monday. However, Apple has previously defended its App Store, stating that it has aided Spotify in becoming Europe’s top music streaming service.
Spotify, on the other hand, has emphasized its complaint against Apple’s aim to establish a “level playing field,” arguing that the App Store restrictions give preference to Apple Music, the company’s own streaming service.
What do the experts say?
Ann Witt, a professor of antitrust law at France’s EDHEC Business School, remarked that Apple is already confronting a stringent regulatory environment with the introduction of the DMA. The Open Market Institute opined that the size of the reported fine will not have a significant impact on Apple’s behavior.
Source: www.theguardian.com
