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Apple Faces $539 Million Fine from European Union: iPhone News in Canada

The European Union is gearing up to levy a historic fine against Apple, marking the company’s first such penalty for antitrust infractions within the EU, according to The Financial Times.

The expected fine of around €500 million ($539 million USD) comes as a result of a European Commission investigation into Apple’s practices with its music streaming service. Sources familiar with the matter anticipate the announcement of this fine early next month, citing the company’s alleged favoritism towards its services over competitors’ on its platform.

The investigation, which was initiated after Spotify filed a formal complaint in 2019, centers on whether Apple prevented apps from directing iPhone users to more affordable music subscription options outside of the App Store.

The Commission is poised to declare Apple’s actions as illegal, contravening EU competition rules designed to uphold a competitive environment within a single market. Additionally, Apple will be accused of abusing its dominant market position by imposing anti-competitive trading conditions on its rivals.

This fine is expected to be one of the largest imposed by the EU on a big tech company, following a series of fines against Google totaling approximately €8 billion ($8.6 million USD), which are currently undergoing legal challenge.

Despite recent efforts by Apple to align its practices with EU regulations by announcing changes to iOS, App Store, and Safari, criticisms persist. Spotify has dismissed Apple’s compliance efforts as not sufficient. In response, Apple has stated that these adjustments provide developers with more options for app distribution and payment processing within the EU.

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