👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

EU set to fine Apple in Spotify music streaming case, sources say

Published 02/27/2024, 01:47 PM
Updated 02/27/2024, 04:56 PM
© Reuters. FILE PHOTO: A 3D printed Apple logo is seen in front of a displayed European Union flag in this illustration taken September 2, 2016. REUTERS/Dado Ruvic/Illustration/File Photo
AAPL
-
META
-
SPOT
-

By Foo Yun Chee

BRUSSELS (Reuters) - Apple (NASDAQ:AAPL) is set to be handed an EU antitrust fine of about 500 million euros ($543 million) next week in a music streaming case triggered by a Spotify (NYSE:SPOT) complaint, sources said.

The European Commission last year charged the iPhone maker with preventing Spotify and other music streaming firms from informing users of options outside Apple's App Store.

Apple declined to comment on Tuesday.

The European Union's competition watchdog said such "anti-steering obligations" constitute unfair trading conditions, a relatively novel argument in an antitrust case and one which has also been used Meta Platforms (NASDAQ:META) in a separate case.

The sources said that Apple was set to be fined on March 5, although the final timing and the amount of the fine could change depending on EU antitrust chief Margrethe Vestager.

The EU will also order Apple to stop such practices, something it will have to do anyway under new EU tech rules called the Digital Markets Act (DMA) which six tech companies including Apple will have to comply with from March 7.

While fining Apple is designed as a deterrent, it pales compared with billion euro fines for Google (NASDAQ:GOOGL) in its three EU antitrust cases over the past decade.

Separately, the Commission is also looking into Apple's decision to remove home screen web apps for users in the EU, which the company said is to abide by the DMA.

"We're in particular looking into the issue of Progressive Web Apps, and can confirm sending the requests for information to Apple and to app developers, who can provide useful information for our assessment," a Commission spokesperson said.

The spokesperson said the scrutiny is part of its assessment of the six companies' compliance with their DMA requirements.

Home screen web apps, which can be launched as a standalone app on a device, allow developers to sell subscriptions through their websites, bypassing Apple's App Store and its 30% fees.

Apple has said EU users will be able to continue accessing websites directly from their home screen through a bookmark with minimal impact to their functionality and that removing home screen web apps affect only a small number of users in the EU.

© Reuters. FILE PHOTO: A 3D printed Apple logo is seen in front of a displayed European Union flag in this illustration taken September 2, 2016. REUTERS/Dado Ruvic/Illustration/File Photo

Breaches of the DMA can result in fines up to 10% of a company's global turnover.

($1 = 0.9215 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.