Apple is bracing for a ban on its App Store rules related to certain music-streaming services, accompanied by a substantial fine from European Union regulators, as reported by Bloomberg News on Wednesday.
Sources familiar with the investigation revealed that EU authorities are finalizing a decision aimed at prohibiting Apple’s practice of preventing music services from diverting their users away from the App Store to alternative subscription options. The decision is expected to be officially announced early next year, with Apple potentially facing a fine of up to 10% of its annual sales, according to Bloomberg’s sources.
The investigation stems from a complaint lodged nearly four years ago by Sweden’s Spotify Technology, alleging that it was compelled to increase the cost of its monthly subscriptions to offset expenses associated with Apple’s App Store rules. The European Commission initiated the probe and filed charges against Apple earlier this year, contending that the imposed conditions are unnecessary and may result in customers paying higher prices for services.
This impending decision marks a pivotal moment in the ongoing scrutiny of tech giants and their market practices, with the European Union taking a strong stance against what it perceives as anti-competitive behavior within the digital ecosystem. Apple, a key player in the tech industry, now awaits the outcome of the EU’s decision and the potential financial repercussions it may face.