Apple is at risk of a significant financial penalty in Europe, with potential fines reaching up to 10% of the company’s revenue, amounting to as much as $30 billion. The company is also facing mandates to alter its App Store policies.
According to the European Union, Apple has misused its App Store rules to hinder competitors in the streaming music service sector, Bloomberg reports, citing sources familiar with the EU regulators’ investigation.
EU regulatory bodies are reportedly finalizing their decision on the App Store’s practices. These practices include prohibiting music services from suggesting alternative, more affordable subscription options to users. The decision is expected to be announced in early 2024.
Interestingly, in the years since the lawsuit was filed, Apple has already partially lifted its restrictions. The tech giant now allows Spotify and other music services to direct users to external websites within their apps for subscription purposes. This change enables users to bypass the 30% fee Apple imposes. Additionally, for the first time, Apple has agreed to let applications promote lower subscription prices outside the App Store. Despite these changes, Spotify asserts that major restrictions still remain.
