©Reuters. FILE PHOTO: In this illustration, taken on September 2, 2016, a 3D-printed Apple logo is visible in front of the European Union flag. REUTERS/Dado Ruvic/Illustration/File Photo
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By Foo Yun Chee
BRUSSELS (Reuters) – Apple (NASDAQ:) will receive an EU antitrust fine of around 500 million euros ($543 million) next week in a music streaming case triggered by a complaint from Spotify (NYSE:), they said. sources said.
The European Commission last year accused the iPhone maker of blocking Spotify and other music streaming companies from informing users of options outside of Apple’s App Store.
Apple declined to comment Tuesday.
The European Union’s competition watchdog has said that such “anti-steering obligations” constitute unfair trading conditions, a relatively new argument in an antitrust case and one that has also been used by Meta Platforms (NASDAQ:) in a case separate.
The sources said Apple would be fined on March 5, although the final timing and amount of the fine could change depending on EU antitrust chief Margrethe Vestager.
The EU will also order Apple to stop such practices, which it will have to do anyway under new EU technology rules called the Digital Markets Act (DMA) that six tech companies, including Apple, will have to comply with from March 7.
While the Apple fine is designed as a deterrent, it pales in comparison to the billion-euro fines levied on Google (NASDAQ:) in its three EU antitrust cases over the past decade.
Separately, the Commission is also examining Apple’s decision to remove web apps from the home screen for users in the EU, which the company says must comply with the DMA.
“We are examining the issue of Progressive Web Apps in particular and can confirm that we have sent requests for information to Apple and app developers, who can provide useful information for our assessment,” a Commission spokesperson said.
The spokesperson said the review is part of the assessment of the six companies’ compliance with DMA requirements.
Home screen web apps, which can be launched as a standalone app on a device, allow developers to sell subscriptions through their websites, bypassing Apple’s App Store and its 30% fees.
Apple said that EU users will be able to continue to access websites directly from the home screen via a bookmark with minimal impact on their functionality, and that removing web apps from the home screen only affects a limited number of users in the EU .
Violations of the DMA can result in fines of up to 10% of a company’s global revenue.
($1 = 0.9215 euros)