The European Union will impose on Apple its first ever fine of 500 million euros over music streaming

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Brussels will impose its first-ever fine on tech giant Apple for allegedly violating EU law over access to its music streaming services, according to five people with direct knowledge of the long-running investigation.

The fine, worth €500 million and currently expected to be announced early next month, is the culmination of the European Commission's antitrust investigation into whether Apple used its own platform to favor its services over those of competitors.

The investigation is investigating whether Apple prevented apps from informing iPhone users of cheaper alternatives to accessing music subscriptions outside the App Store. It was launched after music streaming app Spotify filed a formal complaint with regulators in 2019.

The Commission will rule that Apple's actions are illegal and contrary to the bloc's rules that enforce competition in the single market, people familiar with the case told the Financial Times. It will prohibit Apple's practice of blocking music services from allowing users outside its App Store to switch to cheaper alternatives.

Brussels will accuse Apple of abusing its powerful position and imposing anti-competitive business practices on competitors, the sources said, adding that the European Union will say the tech giant's terms are “unfair trade terms.”

It is one of the most significant financial sanctions imposed by the European Union on big technology companies. A series of fines imposed on Google over several years amounting to about 8 billion euros are being challenged in court.

While Apple has not previously been fined by Brussels for antitrust violations, in 2020 the company was hit with a €1.1 billion fine in France for alleged anti-competitive behavior. The penalty was amended to 372 million euros after appeal.

The European Union's action against Apple will reignite a war between Brussels and Big Tech at a time when companies are forced to show how they comply with landmark new rules aimed at opening up competition and allowing their smaller tech rivals to flourish.

Companies identified as gatekeepers, including Apple, Amazon and Google, must fully comply with these rules under the Digital Markets Act by early next month.

The law requires tech giants to adhere to stricter rules and will force them to allow competitors to share information about their services.

There are concerns that the rules are not enabling competition as quickly as some had hoped, although Brussels insists that changes take time.

Brussels formally charged Apple in an anti-competition investigation in 2021. The commission narrowed the scope of the investigation last year and dropped the charge of pushing developers to use its in-app payment system.

Last month, Apple announced changes to its iOS mobile software, App Store and Safari browser in an attempt to appease Brussels after long resistance to such steps. But Spotify said at the time that Apple's compliance was a “complete and total farce.”

Apple responded by saying that “the changes we're sharing for apps in the EU give developers choice — with new options for distributing iOS apps and processing payments.”

In a separate antitrust case, Brussels is consulting with Apple's rivals over concessions offered by the tech giant to allay fears that it prevents financial groups from using its Apple Pay mobile phone system.

The timing of the committee's announcement has not yet been determined, but it will not change the direction of the antitrust investigation, the people familiar with the situation said.

Apple, which can appeal to EU courts, declined to comment but pointed to a statement a year ago when it said it was “pleased” the Commission had narrowed the scope of the charges and said it would address concerns while promoting competition.

“The App Store has helped Spotify become the best music streaming service across Europe, and we hope the European Commission will end its pursuit of a baseless complaint,” she added.

The Commission, the European Union's executive body, declined to comment.