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Apple Denies EU Competition Law Violation Ahead of Fine Decision

 |  February 25, 2024

As the European Commission gears up to make a pivotal decision regarding a potential hefty fine against Apple, the tech giant vehemently denies any wrongdoing in relation to European competition laws. Reports from the German news agency (dpa) indicate Apple’s firm stance against allegations of impeding competition in the digital music market.

According to a representative of the company, Apple refutes the accusations leveled against it, asserting that it has not engaged in any practices that would hinder fair competition within the digital music sector.

Recent coverage by the Financial Times suggests that Apple faces a fine totaling approximately €500 million (US$541 million) due to alleged breaches of EU competition regulations. The European Commission is slated to unveil the exact fine amount in March, underscoring the gravity of the antitrust dispute.

At the heart of the disagreement lies the contention over whether Apple, as the overseer of the app store for its iPhone and iPad devices, has distorted competition within the music streaming landscape. The dispute has drawn significant attention, particularly from Spotify, the world’s leading streaming service, which has persistently argued that Apple’s practices favor its proprietary service, Apple Music, while stifling competitors’ ability to offer alternative ordering and payment options for music subscriptions.

Read more: Apple Must Change Its EU Charging Ports By 2024

A focal point of contention revolves around whether Apple can prohibit the conclusion of a paid subscription through the Spotify app if the latter opts not to share revenue with the iPhone manufacturer.

In response to these allegations, Apple highlights the robust growth experienced by Spotify, noting that business has flourished notably since the onset of the first complaint in Europe back in 2013. Despite Spotify’s initial grievances, the Swedish company now commands a commanding market share of 59 percent, solidifying its position as the market leader, outstripping competitors such as Amazon Prime Music, which holds an 18 percent market share.

As the dispute intensifies, stakeholders await the European Commission’s forthcoming decision, which is poised to have far-reaching implications for the tech industry and the enforcement of competition laws within the European Union.

Source: The Sun