EU Set to Fine Apple ₹4,475 Cr for Alleged Anti-Competitive Practices

Apple is facing a significant fine of close to EUR 500 million ($539 million or roughly ₹4,475 crore) from the European Union over allegations of stifling competition in the music streaming industry. This would mark Apple’s first penalty from the EU, arising from claims that it hindered rival services like Spotify from informing users about cheaper options outside of its App Store.

The EU’s investigation, initiated following a complaint from Spotify nearly four years ago, alleges that Apple’s practices forced Spotify to increase its subscription prices to cover costs associated with Apple’s control over the App Store.

Apple, which declined to comment beyond referring to its previous statement, has been under scrutiny from EU competition chief Margrethe Vestager. Vestager has been actively pursuing penalties and regulatory actions against Big Tech companies to address concerns of market dominance.

In addition to the pending fine, Apple is also settling a separate probe regarding its tap-and-pay technology. The settlement involves Apple agreeing to open up access to its near-field communication chip on iPhones to rival digital wallets for a period of ten years.

This move by Apple comes as the EU prepares to enforce the Digital Markets Act, aimed at preventing competition violations by tech giants. Under this new legislation, firms will be prohibited from favouring their own services over competitors, among other restrictions.

You might also like

Comments are closed.