Europe to fine Apple $1 million for anti-competitive practices

Apple faces million-dollar fine in Europe. Reportedly Financial TimesThe European Commission will impose severe economic penalties on Cupertino residents following an investigation into abuse of power that began in 2019 following a complaint filed by Spotify.

Although the data is still unofficial, the above-mentioned media indicate that the fine against Apple will be officially announced in early March. The amount will be about 500 million euros, although those in the block could appeal the sanctions. Thus, the resolution of the case may be delayed and the final amount payable may be reduced.

For now, both Apple and the European Commission are avoiding public statements about the apparent fine. This was reported by a representative of the American company. Edge who will not comment on the assumptions. In the past, Tim Cook’s camp has called on European Union regulators to dismiss the case as frivolous.

According to sources Financial TimesEurope will blame Apple for abuse its dominant position and impose anti-competitive conditions on its competitors in favor of their own services. As a reminder, Spotify’s original complaint alleged that the Californians were benefiting Apple Music by requiring its competitors to use the App Store’s subscription system.

If the information is correct and Apple receives a €500 million fine from the European Commission, it would represent a major setback for Californians. True, this amount will not shake the finances of Cupertino residents, who today compete on equal terms with Microsoft for the title of corporation with the highest market capitalization. But it would be a bitter end to the long-running battle with Spotify.

Apple faces a fine of about 500 million euros

Let us recall that the conflict between the Swedish platform and the block participants began in 2016, although Daniel Ek’s people filed an official complaint only in 2019. The European Commission launched an investigation that resulted in Apple being accused of abuse of power in 2021. And in 2022, it became known that regulators would bring new charges against the company.

The announcement of a fine against Apple could come as soon as the European Union Digital Markets Act comes into force. Cupertino officials have announced numerous changes to their ecosystem to accommodate the regulations. From the ability to install applications from third-party stores, to the ability to offer alternative payment methods.

However, the strategy adopted by Tim Cook came under fire from other companies. Among them is Spotify. The main point of contention was the introduction of a new core technology fee – a €0.50 fee that developers will have to pay for each first annual installation of their apps after exceeding 1 million downloads in the European Union. The Swedes accused Apple of using “vague and misleading” terms and flouting both the law and those who wrote it.

Fun fact: If the fine against Apple is confirmed, This will be the company’s first award from the European Commission.. In the past, Cupertino residents have faced economic penalties on the old continent, but always from national regulators. For example, in 2020, France imposed a fine of 1 billion euros on them for violating competition rules. However, Apple appealed and ended up paying out “barely” more than €370 million.