Big fine coming? Apple in the eye of the European Commission for blocking competing music services

It has not been good to use anti-competitive practices in the world of tech in recent weeks.

In other words, it’s not good to be a tech giant. Because after Google’s painful trials against Epic and the American Department of Justice, it is now Apple which could be fined a colossal fine, this time by the European Union for unfair competition practices. The court decision is expected in early 2024, and should resolve a dispute between the Apple brand and Spotify, which has been going on since 2019.

What Apple is accused of

In 2019, Spotify filed a complaint with the European Commission against Apple for abuse of dominant position. The American brand is then accused of distorting competition by applying its pricing, namely its famous 30% commission on all transactions that go through the Apple Store. So this meant that Spotify subscriptions cost more on Apple devices than elsewhere. And this price difference, inevitably, benefited Apple Music, its direct competitor, which was obviously not affected by the Apple commission.

To go further, Apple also made it impossible for users of its devices to download applications other than from its Store, including directly from the Spotify website for example. Faced with European pressure, Apple had to let go, and finally withdrew this ban at the beginning of 2022, even authorizing services like Spotify a few months later to inform directly on the App Store that better pricing conditions were available elsewhere.

A decision expected in 2024

But for Spotify, these few concessions are insufficient, and the Swedish company hopes to see the trial through to the end. The European Union should probably not turn back: it has a history, particularly recent, very extensive in the fight against abuse of a dominant position. And particularly with regard to the American giants of new technologies.

If Apple’s practices were already probably qualifying as an abuse of a dominant position, the start of the full application of the Digital Service Act, from March 2024, should dispel doubts. This regulation, which concerns the largest new technology companies, clearly states that it is illegal to favor your own services at the expense of those of your competitors. Difficult to be clearer.

If Apple is convicted in this trial, the company could have to pay a fine of up to 10% of its annual turnover… Even if the EU rarely goes to the maximum, the sum should happily exceed a billion .

Source : Bloomberg