Despite the adherence of Apple to certain EU rules and laws, the company is now facing a reported fine under the region's governing body, with as much as $538 million asked from the company. This centers on alleged anticompetitive actions of the company, particularly on its App Store's music streaming market policy, as part of a years-long complaint.
The initial complaint came from Apple Music's renowned rival, Spotify, especially as there were no available third-party payment channels on iOS before.
Apple Faces $538M Fine on the EU for App Store Policy
(Photo : CHRIS DELMAS/AFP via Getty Images)
The Financial Times first reported about Apple's upcoming fine in the European region for its App Store policy in music streaming markets, one that sets the company at about 500 million euros (538 million US dollars). This is about the complaint from Spotify filed in 2019 about third-party payment channels, one of the top issues against Apple by various companies.
EU's focus on the case is more on how Apple's policy on the App Store affected the music streaming market specifically, especially with its massive restrictions on the other options.
It was said that Apple got a complaint for illegally blocking music streaming platforms for offering third-party payment options outside the App Store, for it to still earn the 30 percent commissions.
The Spotify complaint against Apple centered on the anticompetitive behavior of the Cupertino giant, and this began in 2019 with the Swedish streaming platform's formal complaint. Soon, it will see a conclusion says the reports, one that would end with Apple facing its first-ever fine on the EU for its anticompetitive practices, with an estimated $538 million fine.
Apple App Store and the EU
The threats against Apple's operations, especially for the App Store, were made apparent when the EU first started dancing around the introduction of the Digital Markets Act, popularly known as the DMA. It went from a proposition to a law now, and this already threatened Apple's operations in the country, with the company focusing on adhering to the DMA for its different products and services.
Apple was branded as a gatekeeper, and certain technologies of the company will soon see a significant change to adhere to the said law and avoid fines.
This includes the sideloading coming to the iOS on iPhone only, Safari, third-party payment channels, iPhone's NFC, and more, but this does not include the iMessage as it is not part of the gatekeeper list.
Initially, Apple's announced changes for the DMA covered massive possible violations for the company, but it is not yet the end of the EU's significant hold over the company, especially with its European operations. The report now centers on a massive fine against Apple for its App Store policy in music streaming markets, and despite allowing third-party payment channels, is possibly facing a massive fine for it.
