Apple
is set to be hit with a €500 million ($539 million) fine by the European Union over allegations it broke antitrust rules by hindering access to its music streaming rivals on its platforms, according to reports.
European Commission antitrust regulators are preparing to announce the fine as early as next month, The Financial Times and Bloomberg reported Sunday, citing people familiar with the matter.
While the amount won’t have much of an impact on
Apple
with its $2.8 trillion market capitalization, it does signal that app developers are beginning to have some success in challenging the company’s App Store rules. It’s also a signal of intent by European regulators in their continuing battle with Big Tech.
It would be the first time the EU has imposed a fine on Apple, having done so to its Big Tech peers
Alphabet
and
Microsoft
in recent years.
The fine relates to an investigation launched following a complaint by Swedish streaming giant
Spotify
in 2019. The probe focused on whether Apple has abused its dominant position in the distribution of music streaming apps through its App Store.
Regulators have found that Apple created an anticompetitive environment by failing to inform users of cheaper music-streaming apps available outside its App Store, the reports added. The Commission is also expected to ban Apple’s practice of preventing music services from letting users outside its App Store switch to cheaper alternatives.
Apple declined to comment on the reports but shared its previous statement on the case, issued in February 2023. “Apple will continue to work with the European Commission to understand and respond to their concerns, all the while promoting competition and choice for European consumers,” an Apple spokesperson said. “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.”
The Commission declined to comment.
It’s a critical time for Big Tech and its relationship with European regulators. The EU has launched new rules intended to prevent large digital platforms from abusing their role as a gatekeeper to digital goods and services. Apple,
Alphabet’s
Google,
Amazon,
and
Microsoft
are all defined as gatekeepers under the Digital Markets Act—the new rules go into effect on March 7.
It hasn’t been a great start to the year for the stock, which is more than 5% down so far in 2024. Among the so-called Magnificent 7, only
Tesla
has performed worse.
A small fine won’t hurt Apple, but any concessions or changes to its App Store model could have an impact.
Write to Callum Keown at [email protected]
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