Apple Inc. (AAPL) is set to be fined around €500 million by the European Commission over accusations of violating EU law related to its music streaming services, according to insiders familiar with the ongoing investigation as reported by the Financial Times.
The fine, expected to be made public early next month, is the result of an antitrust probe examining whether Apple has given preference to its services over its competitors’ on its platform.
The investigation stemmed from a complaint filed by music-streaming app Spotify in 2019, which alleged that Apple was restricting apps from informing iPhone users about more cost-effective music subscription options outside of the App Store.
The European Commission is expected to declare Apple’s actions as illegal and a violation of the bloc’s rules that ensure competition in the single market, accusing the tech giant of leveraging its position and enforcing anti-competitive practices against its competitors.
See Also: Elon Musk Taunts OpenAI, Apple’s Animation, Nvidia’s Triumph, Ark’s Strategy Revamp And More: This Week In AI
This upcoming fine will rank among the most substantial financial penalties levied by the EU against major tech firms. While Apple was fined €1.1 billion in France for alleged anti-competitive behavior in 2020, this will be the first time that Brussels has imposed such a penalty on the company for antitrust breaches.
This action is set to reignite tensions between Brussels and Big Tech, as companies are under pressure to demonstrate compliance with new rules aimed at promoting competition and enabling smaller tech rivals to thrive.
Apple, which can appeal the ruling in EU courts, has not yet commented on the impending ruling but had previously expressed satisfaction with the narrowing of the charges and pledged to tackle concerns while promoting competition.
Read Next: Magnificent 7 Stocks Trigger Concerns Of Market Overheat: Bubble Trouble?
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
