A record 500 million euros will be fined by the European Union to Apple for alleged antitrust violation relating to its music streaming business, which will be the tech giant’s first time being fined by the European Commission.

Apple is accused by the EU of exploiting its dominating market position and engaging in anti-competitive behavior. This would be the first time Apple has ever been fined by the EU.

Spotify, a streaming music service, complained to the European Union's antitrust authorities against Apple on March 13, 2019. Spotify claims that Apple unfairly limits its competitors while giving preference to its streaming music service, Apple Music. According to Spotify, Apple's dominance over the App Store denies customers options and favors Apple Music in competition with other streaming music services.

Spotify's general counsel, Horacio Gutierrez, said that the firm was compelled to employ Apple's billing system in 2014. He claimed that Apple was compelled to lower its monthly subscription charge when it introduced Apple Music for 9.99 euros. After then, Spotify discontinued making use of Apple's in-app purchasing mechanism.

The cost will be included in the case's resolution if Spotify officially complained in 2019. In an attempt to avoid paying Apple's in-app purchase commissions, Spotify and other music streaming services have been prohibited by Apple from providing consumers with alternate methods of subscribing to their services. This action is deemed unlawful by the European Union. These clauses are sometimes called "anti-diversion provisions" in the App Store.

Apple won't be compelled to accept alternate in-app payment options by the impending EU verdict. But it will demand that creators of music streaming apps have the freedom to link to their websites in order to charge for online subscriptions. The price will likely be lower because Apple won't need to be paid a commission.

Apple might face serious repercussions from the fine and possibly have to modify its App Store policy as a result. The business has already been the subject of antitrust investigations throughout Europe; in France, it was fined 1.1 billion euros, which was subsequently lowered to 372 million euros. Apple has voiced its dissatisfaction with the probe, claiming that the App Store has promoted healthy competition and contributed to the success of services like Spotify. The business hasn't, however, formally addressed the rumors of the approaching EU penalties as of yet.

A big step forward is the European Commission's 500 million euro fine that is about to appear for Apple. It is a reflection of the scrutiny that big internet companies are under, especially with regard to their dominance in the market and business practices. The European Union's judgment, which was prompted by Spotify's complaint, emphasizes how crucial it is to promote fair competition.