EU regulators are preparing to place antitrust charges on Apple this week according to sources close to the matter, on allegations that it has broken competition rules by blocking competitors in the App Store.

The charges stem from an initial complaint made by streaming platform Spotify in 2019 regarding the 30 per cent fee Apple charges on subscriptions made via the App Store, and its policy of forbidding apps from directing users to pay for subscriptions elsewhere.

If successful, the charges could lead to a fine of as much as 10 per cent of revenues for the consumer electronics giant and forced changes to its existing business model.

Apple reported revenues of $274.52 billion and net income of $63.930 billion for the 2020 financial year.

The EU competition enforcer, which is currently conducting four investigations into Apple, has not commented on the matter.

National Technology News has contacted Apple for comment.

The news follows the launch of the UK's The Digital Markets Unit (DMU) earlier this month, a regulator which seeks to limit the powers of BigTech, and stamp down on anti- competitive practices that could harm consumers or increase costs.

"Mobile applications have fundamentally changed the way we access content,” said executive vice president at the European Commission Margrethe Vestager when the investigation was announced in June 2020. “Apple sets the rules for the distribution of apps to users of iPhones and iPads.”

“It appears that Apple obtained a “gatekeeper” role when it comes to the distribution of apps and content to users of Apple's popular devices. We need to ensure that Apple's rules do not distort competition in markets where Apple is competing with other app developers, for example with its music streaming service Apple Music or with Apple Books.”

She added: “I have therefore decided to take a close look at Apple's App Store rules and their compliance with EU competition rules.”

Share Story: