Apple faces new EU antitrust charges

Apple faces another antitrust charge in the European Union following a complaint about its practices by a music subscription service Spotify.

As Reuters reported on Monday (April 11th), the European Commission last year accused the tech giant of hindering competition in the streaming music business by imposing rules in its App Store that require developers to use Apple’s internal payment system and prevent them from telling customers about other payment options.

Read more: Apple’s 10th antitrust fine in the Netherlands shows high stakes at stake

These requirements have been criticized by regulators in several other countries. This year, the Netherlands imposed millions in fines on Apple for failing to comply with an order last year to adjust the terms of its App Store to allow providers of dating apps to offer modes alternative payment.

Apple and the EC did not comment on the new charges, Reuters said.

Under the EU’s recently passed Digital Markets Act (DMA), the kinds of practices Apple is accused of will become illegal. However, Apple and other Big Tech companies have some time before the law takes effect, Reuters noted.

Read more: Apple’s financial services ambitions could clash with EU DMA

“The DMA is still two years away. The rules will likely apply to Apple in early 2024. That’s why antitrust cases remain important,” Damien Geradin, a lawyer at Geradin Partners, which advises a group of app developers in other cases, told Reuters. against Apple.

Companies that breach EU antitrust laws can be fined up to 10% of their turnover and ordered to stop the anti-competitive practices. Along with the music streaming investigation, Apple’s e-book and Apple Pay practices are also the subject of EU action.

As PYMNTS reported last week, the DMA could throw a wrench in Apple’s plans to develop its own payment processing system. The company plans to integrate certain financial services in-house, including creating its own payment processing system as well as credit checks, risk assessment for loans and other financial services.

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