Apple faces a large fine in the EU for restricting competition in the App Store

Apple is facing a huge fine in Europe. It could reach 10% of the company’s annual revenue, so it could potentially amount to tens of billions of dollars, reports Bloomberg.

It all started with Spotify’s complaint against Apple four years ago. Back then, the streaming service accused the company of prohibiting developers from using third-party payment systems other than its own in their programs.

But the problem is that the App Store has a mandatory 30% commission. To cover the costs, Spotify was forced to increase the cost of a monthly subscription for users.

In response to this complaint, in the spring of 2021, the European Commission filed charges against Apple that the company violated antitrust laws and restricted competition in the App Store.

In a preliminary opinion, European regulators stated that Apple’s conditions are not necessary and only mean higher prices for customers.

The EU is now preparing to make a decision on the US company’s practice. It is expected to be adopted early next year. In addition to the fine, the Europeans may also force Apple to abandon the ban on third-party payment systems.