The European Commission is reportedly planning to fine Apple around 500 million euros ($539 million) for alleged breaches of EU competition law. The fine comes after an investigation was launched into allegations that Apple hindered third-party music services on its devices and favored its own Apple Music service, following a formal complaint filed by Spotify in 2019.
One of the main issues investigated was Apple’s App Store rules, which prohibit companies like Spotify from directly billing users for subscriptions within their apps. Instead, these companies are required to use Apple’s App Store billing service, which takes a cut of up to 30%. The investigation also focused on whether Apple had restricted apps from informing users about cheaper subscription alternatives outside of the App Store, potentially violating EU competition laws.
If the fine is imposed, it would be one of the largest financial penalties ever imposed by the EU on a major technology company. This comes as part of a broader crackdown on anti-competitive practices in the EU, with the bloc’s landmark Digital Markets Act set to be enacted in March. The new law aims to address the dominance of big tech players and their restrictive business practices.
Under the Digital Markets Act, Apple will be required to allow third-party developers to distribute apps outside of the iOS Store and enable direct billing for their customers. Apple has already made some changes to comply with EU regulations, including allowing software developers to distribute their apps through alternative stores.
In addition to the music service subscription policies, the European Commission is also investigating Apple’s restrictions on rivals accessing its Apple Pay mobile system. Apple has made concessions in relation to this case as well.
The timing of the Commission’s announcement on the fines is yet to be determined, but it is expected that Apple will have the right to appeal the decision in EU courts. While Apple has been fined for antitrust behavior in the past, this would be its first such fine from Brussels.
FAQ Section:
1. Why is the European Commission planning to fine Apple?
The European Commission is planning to fine Apple for alleged breaches of EU competition law, specifically related to allegations of hindering third-party music services on its devices and favoring its own Apple Music service.
2. What was the basis for the investigation?
The investigation centered around Apple’s App Store rules, which prohibit companies like Spotify from directly billing users for subscriptions within their apps and require them to use Apple’s App Store billing service, which takes a cut of up to 30%. The investigation also examined whether Apple restricted apps from informing users about cheaper subscription alternatives outside of the App Store.
3. How much is the fine expected to be?
The fine is expected to be around 500 million euros ($539 million), making it one of the largest financial penalties ever imposed by the EU on a major technology company.
4. What is the Digital Markets Act?
The Digital Markets Act is a new law enacted by the EU that aims to address the dominance of big tech players and their restrictive business practices. It requires companies like Apple to allow third-party developers to distribute apps outside of the iOS Store and enable direct billing for their customers.
5. What changes has Apple made to comply with EU regulations?
Apple has already made some changes to comply with EU regulations, including allowing software developers to distribute their apps through alternative stores. They have also made concessions related to their restrictions on rivals accessing its Apple Pay mobile system.
Definitions:
– EU competition law: It refers to the legal framework implemented by the European Union to ensure fair competition and prevent anti-competitive practices in the market.
– App Store: It is a digital distribution platform operated by Apple, where users can browse and download applications for their devices.
– Digital Markets Act: It is a new law enacted by the EU to address the dominance and restrictive practices of big tech companies.
– Antitrust behavior: It refers to actions or practices that restrict competition, often resulting in monopolistic or anti-competitive behavior.
Suggested Related Links:
– European Commission Official Website
– Apple Official Website
– EU Competition Policy
The source of the article is from the blog klikeri.rs