Apple Music, a global streaming service, is allegedly facing a $538 million fine from the EU, though it follows Brussels rules.
It was accused of unfair business tactics, especially with its App Store policy on music streaming services, which led to the fine. People have been complaining about this situation for a long time.
Apple Music’s main competitor, Spotify, made the first protest, focusing on the lack of third-party payment options on iOS.
Read also: TikTok takes on Spotify, Apple Music, expands into music streaming
Numerous firms complained about Apple’s lack of payment options, which Spotify remedied in 2019.
The EU focuses on how Apple’s App Store policy has affected the music streaming sector, mainly due to limited alternatives.
According to reports, Apple prevents music streaming businesses from offering third-party payment options outside the App Store to maintain its 30% commissions.
Tech companies and regulators continue to disagree on fair competition.
Apple’s beginnings
The potential threats to Apple’s operations, especially the App Store, became apparent as the European Union started considering introducing the Digital Markets Act (DMA), or “the DMA.”
Initially just an idea, it has now become law, which will significantly affect Apple’s business operations in the area.
To keep its operations running smoothly, the company has to make sure that all of its different goods and services are in line with the DMA’s rules. This means navigating the complicated world of regulatory compliance.
The implications for Apple
As a gatekeeper, Apple has made considerable technological changes to comply with the legislation and avoid fines.
New features include iPhone-only sideloading, Safari updates, third-party payment channels, NFC enhancements, and more.
The gatekeeper list excludes iMessage, which is notable. Apple faces a hefty EU fine for its App Store regulations in the music streaming business despite its initial DMA modifications raising concerns. Apple may risk a significant penalty for accepting third-party payments.