Spotify had complained: Apple faces $538 million fine

According to a report published by the Financial Times, Apple is set to be fined by the EU Commission for the first time. According to the report, the fine is expected to be around 500 million euros (approximately 538 million dollars).

This decision will be issued as a result of the case that began following a formal complaint filed by Spotify in 2019.

IS APPLE MUSIC BEING FAVORED?

The European Commission believes that Apple has acted illegally by preventing music streaming apps like Spotify from informing customers about other ways to subscribe to their services, thereby avoiding Apple's in-app purchase commission.

These are referred to as the App Store's anti-steering provisions. Although anti-steering provisions are applied more broadly, this EU investigation specifically concerns the effects of App Store policy on music streaming.

Essentially, the argument of the EU is that Apple's mandatory commission and restrictions on services informing users about alternative payment methods mean that Apple Music is being unfairly favored over third-party competitors.

DECISION EXPECTED TO BE ANNOUNCED

The upcoming EU decision will not force Apple to allow alternative in-app payment methods, but it will insist that music streaming app developers be able to freely link to their websites to subscribe online. The EU's decision regarding the music streaming case is expected to be officially announced in the coming weeks, so we will learn all the details then.

In 2022, Apple relaxed its anti-steering provisions for reader apps, allowing companies to add links to their own websites. Since Spotify also falls under the scope of this rule, it wants to provide a link to its website to offer its subscribers different tiers of subscriptions.

The EU investigation is also evaluating Apple's previous conduct. The Digital Markets Act, which will come into effect next month, will allow Spotify to use alternative payment methods in the EU.

News Source: 12punto