Apple is set to face a substantial fine of $539 million (approximately €500 million) following an antitrust complaint filed by Spotify, according to a report by the Financial Times on Sunday morning. The investigation by regulators was prompted by Spotify’s allegation that Apple’s policies inhibit iPhone apps from informing users about alternative music services at a lower cost than Apple’s own music platform.
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What is Antitrust Complaint Policy?
The antitrust policy refers to regulations and laws that aim to promote fair competition in the marketplace by preventing monopolistic practices and ensuring that consumers have a variety of choices. The antitrust complaint against Apple revolves around allegations that the company’s policies unfairly restrict competition in the digital music streaming market. Specifically, Spotify has accused Apple of leveraging its dominant position in the smartphone market to favor its own music streaming service, Apple Music, over competitors like Spotify. This alleged behavior, if proven true, could violate antitrust laws by stifling competition and limiting consumer choice. The European Union’s investigation into Apple’s practices reflects its commitment to enforcing antitrust regulations to maintain a level playing field for businesses and protect consumer interests.
The crux of the matter revolves around Apple’s efforts to maintain control over its App Store payment system, effectively constraining both apps and users within its ecosystem. Spotify lodged its complaint in 2019, asserting that Apple’s policies stifle competition against its own Apple Music service. Consequently, this triggered an investigation by the European Union (EU) in the subsequent year. The EU’s objections eventually narrowed down to Apple’s prohibition of developers from linking to their own subscription sign-up pages within their apps—a policy that Apple revised in 2022 under regulatory pressure, particularly from Japan.
While the fine of $539 million appears substantial, it pales in comparison to the potential penalty the EU initially considered, which could have amounted to nearly $40 billion, equivalent to 10 percent of Apple’s annual global turnover. Notably, Apple faced a fine exceeding $1 billion in 2020, although this was reduced to around $366 million by French authorities after the company appealed.
Wrapping Note:
Responding to inquiries from The Verge via email, Apple representative Emma Wilson declined to comment on the speculation, instead referring to previous statements made by another Apple spokesperson, Hannah Smith. Smith had expressed hopes in February of the preceding year that the Commission would cease pursuing the case, asserting that it lacked merit. On the other hand, European Commission spokesperson Lea Zuber declined to provide any comment on the matter.
As of the time of reporting, Spotify had not issued any response.