EU to impose $539 million fine on Apple for Competition Law violation
text_fields
Brussels: The European Union is reportedly planning to impose a fine of approximately 500 million euros ($539 million) on Apple for alleged breaches of EU competition law, according to anonymous sources cited by the Financial Times on Sunday.
The anticipated fine is slated to be officially announced early next month. Last year, the European Commission accused Apple of distorting competition in the music streaming market through App Store rules that restrict developers from informing users about alternative purchasing options.
However, the European Commission declined to comment.
Apple has faced fines related to competition law violations in the past.
In March 2022, the Dutch Authority for Consumers and Markets (ACM) imposed a €50 million fine on Apple for anti-competitive practices in its App Store concerning dating apps.
The ACM found Apple's requirement for dating apps to use its in-app purchase system and pay a 30% commission to be anti-competitive, limiting alternative payment options and disadvantaging competitors. Apple appealed the fine, but it was upheld in November 2023, with the ACM deeming Apple's implemented changes insufficient.
In March 2020, the French Competition Authority imposed a €1.1 billion fine on Apple for its distribution agreements with wholesale partners Ingram Micro and Tech Data.
The Authority found these agreements restricted competition by imposing resale price maintenance, limiting market access to other wholesalers, and creating an economic dependency on Apple. Apple challenged the fine, but various courts upheld it, and as of February 2024, the fine remains in effect.