(MENAFN) According to reports from the Financial newspaper on Sunday, the European Union (EU) is on the verge of imposing its inaugural monopoly fine on tech giant Apple, potentially amounting to 500 million euros (USD539 million). The fine stems from accusations of Apple's alleged breach of EU law in relation to its music streaming services, as well as its imposition of App Store regulations believed to stifle competition.

The investigation into this matter was initiated in 2019 following a complaint lodged by Swedish company Spotify, which contended that it had been compelled to raise the price of its monthly subscription to offset expenses associated with Apple's purported control over the operations of the App Store. The focus of the European Commission's inquiry honed in on Apple's "no user routing" rules, formally outlined in February 2023, with the Commission asserting that such provisions were superfluous and led to inflated prices borne by consumers.

In response to mounting scrutiny, Apple instituted changes in early 2022, permitting music streaming services like Spotify to direct users to their websites for subscription sign-ups. This direct subscription method circumvented Apple's revenue stream by bypassing the App Store's payment system, which typically incurs a commission of up to 30 percent. While this move resulted in a reduction of Apple's revenue, it afforded consumers greater flexibility in pricing and subscription options.

MENAFN19022024000045015682ID1107869102