Apple faces £430m EU fine in clash with Spotify over fees

APPLE is facing a €500m (£427m) fine from the EU as part of a long-running competition row with Spotify.

Brussels is preparing to levy what would be its first anti-trust fine for the iphone maker, the Financial Times says.

The decision follows a years-long European Commission probe into whether Apple abused its position in the market to block rivals.

Apple has been accused of unfairly blocking apps from informing users about alternative ways to pay.

The EU investigation was launched after an official complaint from Spotify in 2019. The music streaming app claimed it had been forced to hike the price of its monthly subscriptions to cover Apple’s App Store rules costs.

Apple takes a cut of 30pc of all purchases done on the App Store. Spotify said this policy forced it to increase monthly subscriptions for its premium service from £9.99 a month to £12.99.

At about the same time, Apple launched a competing music streaming service that cost £9.99 a month.

The EU charged Apple with anti-competitive behaviour in 2021. In an attempt to appease Brussels, Apple last month announced changes to its IOS mobile software, App Store and Safari browser that allowed companies to sign-post cheaper subscription options elsewhere. Spotify branded the changes a “complete and total farce”.

Brussels is expected to rule that

Apple’s actions were illegal next month, according to the FT. The Commission declined to comment. Apple and Spotify were approached for comment.

The Commission could impose a fine of up to 10pc of Apple’s $385bn annual turnover if the company is found to have broken the law.

Apple has faced multiple battles over its App Store fees in recent years.

The looming fine is also the latest attempt by Brussels to rein in the power of Big Tech.