Apple Lossless Audio CODEC (ALAC), in crosshairs of the European Union. The European Commission conducted asurvey on alleged anti-competitive practices by the Cupertino company regarding music streaming. They suspect that Apple has blocked apps from informing iPhone users about alternatives more convenient to access music subscriptions.
Apple risks fine of 500 million euros from the EU
For this the EU Antitrust would be ready to inflict on Apple an unprecedented fine in the large technology sector, esteemed around 500 million of euros, for violations of competition rules in the music streaming sector. The news was reported by Financial Times, which cites five sources briefed on the investigation. The official announcement is expected in early March.
Apple, Spotify's complaint
The European Commission began investigating Apple after a Spotify complaint of 2019. According to what was reported by Financial Times, Apple will be accused by the Brussels Antitrust for abuse of dominant position e anti-competitive business practices.
The 500 million fine would be one of the most significant imposed by the EU on big tech companies, in line with the sanctions imposed on Google for a total of 8 billion euros, on which there are still pending appeals.
Apple under the lens of the EU Antitrust
To date, Apple has never been fined by the European Antitrust but in 2020 it received a fine of 1,1 billion euros in France for anti-competitive behavior, which was later reduced to 372 million euros after an appeal.
Recently, however, Apple has had to align itself with the new regulations of the European Union, in particular with the Digital Markets Act (DMA), breaking a historical taboo for the company founded by Steve Jobs: the App Store will no longer be the only channel for installing new applications on iPad and iPhone.
But there is a sword of Damocles hanging over the Apple company. In fact, an opinion by the Advocate General at the European Court of Justice, Giovanni Pitruzzella ssuggests canceling the ruling that rejected the EU Commission's measure against Ireland's tax breaks for Apple. Apple would thus risk having to pay 13-14 billion euros due to the advantageous tax treatment it had obtained from Ireland and which for over 20 years reduced its tax burden by up to 0,005%.
