Apple is in hot water with the European Commission over a possible antitrust breach, as the tech giant faces a potential fine of around €500 million. The EC’s ruling is expected to be the first-ever fine issued against Apple for allegedly breaking EU law over competition in the streaming music market. The Financial Times reported the impending fine, which could amount to about $539 million USD.
Key Takeaway
Apple is facing a potential EU fine over allegations of antitrust breaches related to Spotify’s complaint, sparking a public dispute between the two tech giants.
Apple’s Response
In response to the impending ruling, Apple has taken a proactive stance, publicly disputing the idea that Spotify has been harmed by any anticompetitive practices on its part. The company argues that it has supported the success of all developers, including Spotify, which holds the largest share of the music streaming app market at 56%. Apple also shared non-public details about Spotify’s business, including its use of Apple’s APIs and the number of app versions submitted to App Review.
Apple’s Position
Apple firmly believes that its system of in-app purchases for services such as music subscriptions benefits consumers by providing a seamless and secure experience. The company contends that Spotify’s complaint is an attempt to leverage regulations to increase its profits, rather than a genuine concern about anticompetitive practices.
Spotify’s Response
Spotify, on the other hand, has been vocal in its opposition to Apple’s practices, accusing the tech giant of favoring its own music service and imposing unfair restrictions on Spotify. The streaming platform has expressed support for the European Commission and hopes for a fair resolution to create a level playing field for all involved.
