The European Commission is set to impose a $500 million fine on Apple for anti-competitive practices, as reported by the Financial Times. This development comes after Spotify accused Apple in 2019 of hindering third-party music services through restrictive App Store policies. These rules prevent companies from offering direct subscription payments within their apps, instead mandating the use of Apple’s billing system.
Brussels, after initially broadening its inquiry into Apple’s practices, scaled back the investigation last year, dropping the accusation related to mandatory in-app payment systems. However, it found that Apple limited apps from informing users about more affordable subscription options outside the App Store. Consequently, the Commission is preparing to formally charge Apple with abusing its dominant market position by enforcing unfair subscription policies on music service providers.
This fine marks one of the heftiest penalties the EU has ever levied against a major tech firm, with Google having previously faced similar financial punishments. Although Apple has encountered antitrust fines before, notably a €1.1 billion penalty in France that was later reduced to €372 million on appeal, this would be the company’s first such fine issued by Brussels. This action precedes the introduction of the Digital Markets Act in March, targeting the monopolistic practices of tech giants like Apple, Amazon, and Google by labeling them as “gatekeepers” and seeking to dismantle barriers faced by smaller companies.
The Digital Markets Act aims to open up digital markets, allowing third-party developers to distribute apps outside of Apple’s iOS Store and enabling direct billing to customers. Apple has responded to EU regulations by updating its iOS, Safari, and App Store policies and plans to permit third-party app stores on its devices.
Additionally, the European Commission is examining Apple’s restrictive practices around Apple Pay in a separate case, to which Apple has already made concessions. While the Commission has yet to finalize the timing of the fine announcement, Apple’s right to appeal the decision in EU courts remains intact. Apple acknowledged the narrowed focus of the investigation but refrained from commenting on the reported fine.
