Apple is reportedly facing a $540.7 million fine from the EU over restrictions on access to music streaming services.
In what would be a landmark blow to the US tech company, the European Commission is investigating whether the tech titan blocked music streamers from telling users about cheaper ways to subscribe outside its app store where it takes a significant cut of revenues.
Brussels plans to impose a fine of $540.7 million on the firm, according to the Financial Times – which would represent a landmark ruling against Apple after years of complaints from companies whose services are delivered via iPhone apps.
Last month, Apple said it would allow EU customers to download apps without going through its own app store in a response to the bloc’s Digital Markets Act. The law introduces new obligations for “gatekeepers” including Amazon and Google who hold particularly powerful positions in controlling mobile phone software choices.
Swedish streamer Spotify filed a complaint against Apple with the EU in 2019, claiming it limits choice and competition in its app store by charging a 30 per cent fee on all purchases.
Apple also prevented Spotify and other companies from informing customers on their phones that they could avoid the commission, and get a better deal, simply by signing up on Spotify’s website.
Apple says its fee is justified because it spends heavily on providing a secure app store, and provides Spotify with access to hundreds of millions of customers.
But Spotify argues that Apple’s own music streaming service, Apple Music, does not face the same extra cost, giving it an advantage and making the fees anti-competitive.
The Financial Times reported that, according to five people close to the investigation, the European Commission will say Apple’s actions are illegal and go against the bloc’s rules that enforce competition in the single market.
Apple has defeated a lawsuit by the developer of ‘Fortnite’,’Epic Games, which said the app store was an illegal monopoly.
