EU Fines Apple Near €500 Million Over Spotify Row

(CTN News) – As part of an investigation by the European Union, Apple Inc. is expected to be fined close to €500 million ($539 million) over allegations that it silenced music-streaming rivals, including Spotify Technology SA, on its platforms.

There will be a fine imposed on Apple – Apple’s first ever monetary fine from the EU — after the EU watchdog determined that the company violated competition rules by preventing rival music services from telling customers about cheaper alternatives outside of the App Store. This is according to sources familiar with the matter.

A spokesperson for Apple, when contacted for comment,

Referred to a previous announcement, which stated that the “App Store has helped Spotify become the number one music streaming service across Europe.”

Neither the European Commission nor its spokesperson would comment. A fine was imposed earlier this week, according to the Financial Times.

Apple’s App Store is the subject of the European Union’s investigation after a complaint nearly four years ago from Spotify that claimed it was forced to raise the price of its monthly subscriptions as a result of alleged stranglehold on how App Store operates, which led to a price increase of its subscriptions.

During a closed-door meeting with EU officials and last June, Apple informed regulators it had already addressed any potential competition concerns arising from Spotify’s complaint during a closed-door meeting between the two parties.

There are reports that is on track to have its settlement proposal accepted by the EU in its investigation into its tap-and-pay technology, according to people familiar with the case.

Apple has offered a 10-year deal to open up access to its coveted near-field communication chip on iPhones to rival digital wallets. The commission is expected to accept this offer after a market test received largely positive feedback, the people who spoke to the media said, asking not to be identified because the matter is confidential.

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