Apple May Face EU Antitrust Fine Up to 500 Million Euros
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After legislating Type-C as the unified interface standard across the EU, forcing Apple to abandon its proprietary Lightning port, the EU is now setting new rules for the consumer electronics giant.
According to the latest reports on Sunday, Apple is set to receive a 500 million euro fine for antitrust violations in the music streaming subscription sector, with the decision potentially announced as early as next month.
The fine may coincide with the implementation of the Digital Markets Act Insiders revealed that Apple was fined for preventing competitors from informing iPhone users about cheaper payment options outside Apple's subscription channels. European streaming giant Spotify officially filed a complaint in 2019, prompting an investigation by EU regulators.
Spotify had accused Apple of forcing it to raise subscription prices due to the way Apple's App Store operates. In early 2022, Apple allowed music apps to direct users to register and pay online, bypassing the App Store's 30% fee. However, Spotify later responded that the restrictions still existed, calling Apple's move "just for show." EU regulators have determined that Apple's actions constitute an abuse of market dominance, imposing anti-competitive restrictions on competitors, and will order Apple to cease such behavior. According to EU antitrust regulations, Apple could face fines of up to 10% of its global revenue.
Although somewhat counterintuitive, this upcoming fine will mark Apple's first antitrust penalty from the EU. However, Apple was previously fined €1.1 billion by French regulators for monopoly issues, which was reduced to €372 million after appeal. For comparison, the EU has previously issued a total of 8 billion euros in fines to another U.S. tech giant, Google, and the legal proceedings are currently ongoing.
Unlike the intermittent antitrust investigations, Apple, Google, and Amazon will soon face new challenges in the EU market: these tech giants, designated as 'gatekeepers of market competition,' must fully comply with all provisions of the EU's Digital Market Act by early March.
Under the pressure of this legislation, Apple announced at the end of January this year that starting March 2024, Apple users in Europe will be able to install software applications through channels other than the official App Store. U.S. Antitrust Lawsuit Against Apple Is Coming Soon
According to previous reports, while dealing with the EU, Apple is expected to face a lawsuit from the U.S. Department of Justice as early as March, with the issue still revolving around antitrust violations.
The U.S. Department of Justice's case will focus on Apple's restrictions on iPhones and iPads, which allegedly prevent competitors from effectively competing. The antitrust investigation into Apple by the U.S. Department of Justice began in 2019, but authorities chose to prioritize lawsuits against Google, Amazon, and Meta first.
It is worth noting that the U.S. Department of Justice is also closely monitoring Apple's actions under the influence of the EU's Digital Markets Act, as the core issues involved are essentially the same. After all legal proceedings in the Apple vs. Epic Games App Store fee lawsuit concluded, Apple announced in mid-January that US iPhone users will be able to redirect to external payment channels. However, the 'Apple Tax' still applies, albeit reduced from the original 15% or 30% to 12% and 27%.