Yahoo Finance Apple Vs. Spotify: iPhone Maker Fights $1.95B EU Fine Over App Store Practices
Apple Inc (NASDAQ:AAPL) is contesting a $1.95 billion (1.8 billion euros) fine imposed by the European Union, which accuses the tech giant of undermining fair competition from music-streaming services like Spotify Technology SA (NYSE:SPOT).
The company has filed an appeal with the EU's General Court in Luxembourg to overturn the decision made in March, according to a report from Bloomberg.
The EU's action against Apple also includes a mandate to stop preventing music-streaming apps from informing users about cheaper deals outside of its App Store.
Spotify has been changing its app, such as displaying pricing information in-app for EU users, to comply with the European Commission's antitrust ruling against Apple.
The investigation began following a complaint from Spotify, which claimed that Apple's control over the App Store forced it to raise subscription prices to cover additional costs.
The European Commission, the EU's antitrust authority, has stated it is prepared to defend its decision in court.
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However, Apple pointed to an earlier blog post that argued that EU regulators did not find any credible evidence of consumer harm.
This latest appeal is part of a series of legal battles between Apple and EU regulators. Previously, Apple was hit with a record 13 billion euro tax bill over Irish state aid, a decision that is still pending final resolution after Apple won an initial round.
EU competition chief Margrethe Vestager has led efforts to curb the dominance of Silicon Valley firms through fines and new regulations, including the Digital Markets Act.
This landmark legislation introduces a range of rules for major tech companies. To comply, Apple has had to make significant changes to its iOS, Safari, and App Store services within the EU, and has launched further legal challenges against these regulations.
Apple stock has gained more than 9% in the last 12 months. Investors can gain exposure to the stock via Technology Select Sector SPDR Fund (NYSE:XLK) and IShares U.S. Technology ETF (IYW).
Price Action: At the last check Tuesday, AAPL shares were trading higher by 0.55% at $192.09.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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