In a historic move, Apple Inc. (AAPL) is set to receive a hefty fine from the European Commission over alleged violations of EU law related to its music streaming services, according to sources familiar with the ongoing investigation as reported by the Financial Times.
The anticipated fine, estimated to be around €500 million and likely to be announced early next month, stems from a European Commission antitrust inquiry to determine whether Apple has unfairly favored its own services over those of its competitors.
The investigation was initiated following a formal complaint filed by music-streaming app Spotify in 2019, alleging that Apple was impeding apps from informing iPhone users about more cost-effective music subscription options outside of the App Store.
The commission is expected to declare Apple’s actions as illegal and a breach of the bloc’s regulations aimed at preserving fair competition in the single market. Apple is likely to face allegations of exploiting its market dominance and engaging in anti-competitive practices against its rivals.
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This looming fine would rank among the largest financial penalties imposed by the EU on major tech firms. The commission had previously fined Google an accumulated €8 billion over several years, a decision currently under legal challenge.
While Apple faced a €1.1 billion fine in France for alleged anti-competitive behavior in 2020, this would mark the first instance of Brussels levying such a penalty on the company for antitrust violations.
The EU’s action against Apple is poised to reignite tensions between Brussels and Big Tech, as companies come under scrutiny to demonstrate adherence to new regulations intended to foster competition and support smaller tech competitors.
Apple, with the option to challenge the ruling in EU courts, has not yet responded to the impending judgment but had previously expressed contentment with the narrowing of the charges and a commitment to address concerns while championing competition.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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