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Brussels will impose its first fine on tech giant Apple for breaching EU law on access to its music streaming services, the Financial Times reports.
The fine, which is about 500 million euros and is expected to be announced early next month, is the culmination of an antitrust investigation by the European Commission into whether Apple has used its own platform to favor its services over those of competitors.
The investigation is looking into whether Apple blocked apps from informing iPhone users of cheaper alternatives to access music subscriptions outside the App Store. It was launched after music streaming app Spotify filed a formal complaint with regulators in 2019.
The commission will say Apple's actions are illegal and go against the bloc's rules governing competition in the single market, sources told the Financial Times. It will stop Apple's practice of blocking music services to allow users outside the App Store to switch to cheaper alternatives.
Brussels will accuse Apple of abusing its powerful position and imposing anti-competitive trade practices on rivals, the people said, adding that the EU would say the tech giant's terms were "unfair trading conditions".
This is one of the most significant financial penalties imposed by the EU on large technology companies. A series of fines against Google imposed over several years and amounting to around 8 billion euros are being contested in court.
Apple has never been fined for antitrust violations by Brussels before, but the company was hit in 2020 with a €1.1 billion fine in France for alleged anti-competitive behavior. The penalty was revised to 372 million euros after an appeal.
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