Apple faces £427 million fine from EU as part of Spotify row

Apple

The decision follows a years-long European Commission investigation into whether Apple abused its position in the market to block rivals

Apple is facing a €500 million (£427 million) fine from the European Union as part of a long-running competition row with Spotify.

Brussels is preparing to levy what would be its first antitrust fine for the iPhone maker, according to the Financial Times.

The decision follows a years-long European Commission (EC) investigation into whether Apple abused its position in the market to block rivals.

Apple has been accused of unfairly blocking apps that use its App Store from telling users about alternative ways to pay.

The European Union probe was launched after an official complaint from Spotify in 2019. The music streaming app claimed it had been compelled to increase the price of its monthly subscriptions to cover costs associated with Apple’s App Store rules.

Apple takes a cut of 30% of all purchases done through the App Store. Spotify said this policy compelled it to raise monthly subscriptions for its premium service from £9.99 a month to £12.99.

Around the same time, Apple launched a competing music streaming service that cost £9.99 a month.

The European Union formally charged Apple with anti-competitive behaviour in 2021.

In an effort to appease Brussels, Apple last month announced changes to its iOS mobile software, App Store and Safari browser that allowed firms to sign-post cheaper subscription options elsewhere. It said the changes “give developers choice”.

Spotify branded the changes a “complete and total farce” at the time.

Brussels is expected to rule that Apple’s actions were unlawful next month, according to the FT, citing sources familiar with the probe.

The Commission could impose a fine of up to 10% of Apple’s $385 billion annual turnover if the company were found to have infringed the law.

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