November 22, 2024

Taylor Daily Press

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European fine threatens Apple over Spotify case |  apple

European fine threatens Apple over Spotify case | apple

Apple is soon at risk of receiving a large fine from the European Commission. The US tech group will also likely have to stop some restrictions on music services like Spotify. Bloomberg News reported this news from informed sources. Supervisors in Brussels are currently finalizing punitive measures.

This has been going on for years. Apple requires app makers in the App Store to use its payment system. The technology company also requires a commission of up to 30 percent per transaction. Spotify has complained about this.

In February, the European Commission said in a private complaint that Apple had imposed too many restrictions on music streaming services. In particular, the requirement not to inform customers of other options for obtaining a cheaper app subscription amounts to an “abuse of market power” by Apple. Consumers suffer because the price is higher for them.

The European Commission now refuses to comment. Apple has not yet responded to Bloomberg’s letter. A decision on Brussels’ intervention is expected early next year. It is not yet clear how high the fine that Apple will impose. In theory, this could amount to 10 percent of annual sales volume, a huge sum in Apple’s case. But in practice, EU fines rarely reach this high level.