Apple Faces $500 Million Fine in Antitrust Probe over Music Streaming Practices

Apple is facing a fine of over $500 million in antitrust probe from the European Commission.
The investigation was sparked by a complaint that Spotify filed in 2019, alleging that Apple hindered its music-streaming rivals and favored its own service.
Apple Faces $500 Million Fine in Antitrust Probe over Music Streaming Practices

Apple is reportedly facing a fine of over $500 million in antitrust probe from the European Commission. The investigation was sparked by a complaint that Spotify filed in 2019, alleging that Apple hindered its music-streaming rivals and favored its own service.



Confidence

100%

No Doubts Found At Time Of Publication

Sources

70%

  • Unique Points
    • Apple will face a European Union fine close to €500 million ($539 million) over the regulator޷s investigation into allegations it silenced music-streaming rivals, including Spotify Technology SA, on its platforms.
    • The penalty will be set after the EU watchdog found that Apple fell foul of competition rules in thwarting rival music services from informing users that cheaper alternatives existed outside of its App Store.
    • Apple has also faced pressure from individual EU member states. It was fined €1.1 billion in France in 2020 for anti-competitive behavior, although the total was later reduced to €372 million after an appeal.
  • Accuracy
    • Apple hindered third-party music services on its devices and favored its own Apple Music service.
    • The European Commission found that Apple failed to inform iPhone users about cheaper, alternative music-streaming apps outside its App Store.
  • Deception (50%)
    The article is deceptive in several ways. Firstly, it states that Apple will face a fine close to €500 million ($539 million) over the regulator's investigation into allegations it silenced music-streaming rivals including Spotify Technology SA on its platforms.
    • The article claims that Apple will face a fine of €500 million, but this is not accurate. According to sources familiar with the matter, the penalty will be set after the EU watchdog found that Apple fell foul of competition rules in thwarting rival music services from informing users that cheaper alternatives existed outside of its App Store.
    • The article states that Spotify was forced to ramp up their monthly subscriptions due to Apple's alleged stranglehold on how the App Store operates. However, this is not accurate as there are other ways for customers to access music streaming services.
  • Fallacies (80%)
    The article contains several fallacies. The author uses an appeal to authority by citing the European Commission's investigation into Apple and its alleged anti-competitive behavior. This is a form of informal fallacy as it relies on the credibility of an external source rather than providing evidence or logical reasoning for their claims.
    • The EU watchdog found that Apple fell foul of competition rules in thwarting rival music services from informing users that cheaper alternatives existed outside of its App Store, according to people familiar with the matter.
  • Bias (80%)
    The article is biased towards the EU's investigation into Apple and its alleged anti-competitive behavior. The author uses language that portrays Apple as a villain for not allowing users to access cheaper alternatives outside of their app store. Additionally, the author mentions previous fines against Apple in France without providing any context or explanation for why those fines were reduced.
    • Apple, when contacted for comment, referred to a previous statement, which said that the “App Store has helped Spotify become the top music streaming service across Europe.”
      • The EU watchdog found that it fell foul of competition rules in thwarting rival music services from informing users that cheaper alternatives existed outside of its App Store
      • Site Conflicts Of Interest (50%)
        Samuel Stolton has a conflict of interest on the topics of Apple Inc., Spotify Technology SA, and European Union as he is an employee of Yahoo Finance which is owned by Alphabet Inc. (Google) which competes with these companies in the music streaming service industry.
        • Samuel Stolton works for Yahoo Finance, a company that competes with Spotify Technology SA in the music streaming service industry.
        • Author Conflicts Of Interest (50%)
          Samuel Stolton has a conflict of interest on the topics of Apple Inc., Spotify Technology SA, European Union and Margrethe Vestager as he is reporting for Yahoo Finance which is owned by Alphabet Inc. (Google) which competes with these companies.

          68%

          • Unique Points
            • Apple will reportedly face a $539 million fine over Spotify's antitrust complaint
            • Spotify filed the complaint in 2019, alleging that Apple policies prevent iPhone apps from informing users about cheaper alternatives to Apple’s music service
            • The European Commission is investigating whether Apple blocked music streamers from telling users about cheaper ways to subscribe outside its app store.
            • Apple prevented Spotify and other companies from informing customers on their phones that they could avoid the commission simply by signing up on Spotify's website.
          • Accuracy
            • Apple hindered third-party music services on its devices and favored its own Apple Music service
            • The European Commission found that Apple failed to inform iPhone users about cheaper, alternative music-streaming apps outside its App Store
            • Spotify filed a formal complaint to regulators in 2019
          • Deception (30%)
            The article is deceptive in several ways. Firstly, the author uses sensationalism by stating that Apple will face a $539 million fine over Spotify's antitrust complaint without providing any context or evidence to support this claim. Secondly, the author misrepresents the EU investigation as an opposition to Apple's refusal to let developers link out to their own subscription sign-ups within their apps when in fact it was a policy that Apple changed following regulatory pressure in Japan. Lastly, the article uses selective reporting by only mentioning one of Spotify's complaints against Apple and ignoring other issues such as its allegations that Apple Music pays less for music than other streaming services.
            • The author states that 'A Sunday morning report from the Financial Times says the €500 million (about $539 million USD) fine comes after regulators investigated a Spotify complaint' without providing any context or evidence to support this claim. This is an example of sensationalism.
            • The author misrepresents the EU investigation as an opposition to Apple's refusal to let developers link out to their own subscription sign-ups within their apps when in fact it was a policy that Apple changed following regulatory pressure in Japan. This is an example of deceptive reporting.
          • Fallacies (85%)
            The article contains several fallacies. The author uses an appeal to authority by stating that the EU whittled its objections down to oppose Apple's refusal to let developers even link out to their own subscription sign-ups within their apps. This statement implies that the EU is a reliable source of information, but it does not provide any evidence or reasoning for this claim. Additionally, the author uses inflammatory rhetoric by stating that $539 million may sound like a lot, but a much bigger fine was on the table when the EU updated its objections last year. This statement is meant to create fear and anxiety in readers without providing any context or evidence for this claim.
            • The author uses an appeal to authority by stating that the EU whittled its objections down to oppose Apple's refusal to let developers even link out to their own subscription sign-ups within their apps. This statement implies that the EU is a reliable source of information, but it does not provide any evidence or reasoning for this claim.
            • The author uses inflammatory rhetoric by stating that $539 million may sound like a lot, but a much bigger fine was on the table when the EU updated its objections last year. This statement is meant to create fear and anxiety in readers without providing any context or evidence for this claim.
          • Bias (85%)
            The article is biased towards Apple by presenting the fine as a negative outcome for Spotify and portraying it as an attempt to keep apps corraled inside its App Store payments system. The author also uses language that dehumanizes Spotify's complaint such as 'muted competition against Apple Music'. Additionally, the article presents only one side of the story by not providing any context or information about Spotify's complaints and why they were investigated.
            • Spotify complained in 2019 that Apple’s policies muted competition against Apple Music, kicking off an EU investigation the next year.
              • The issue comes down to Apple’s efforts to keep apps corraled inside its App Store payments system.
              • Site Conflicts Of Interest (50%)
                Wes Davis has a financial interest in Apple as he is an employee of The Verge which is owned by Vox Media. He also has a professional affiliation with Spotify as the article discusses their antitrust complaint against Apple.
                • Author Conflicts Of Interest (50%)
                  The author has a conflict of interest on the topic of antitrust complaints against Apple as they are reporting on Spotify's complaint. The article does not disclose this conflict.

                  72%

                  • Unique Points
                    • Apple is reportedly facing a ✓50 million fine from the EU over restrictions on access to music streaming services. ✓ The European Commission is investigating whether Apple blocked music streamers from telling users about cheaper ways to subscribe outside its app store where it takes a significant cut of revenues.
                    • Apple prevented Spotify and other companies from informing customers on their phones that they could avoid the commission simply by signing up on Spotify✙s website. ✓ According to the Financial Times, Brussels plans to ban the practice of blocking music services from advertising cheaper subscriptions outside the platform.
                    • Apple did not provide fresh comment, ✓ but pointed to a previous statement saying it would respond to the commission's concerns “while promoting competition and choice for European consumers”.
                  • Accuracy
                    • Apple is reportedly facing a €500m fine from the EU over restrictions on access to music streaming services.
                    • ✓ Apple blocked music streamers from telling users about cheaper ways to subscribe outside its app store where it takes a significant cut of revenues. ✓ The European Commission is investigating whether Apple blocked music streamers from telling users about cheaper ways to subscribe outside its app store.
                    • ✓ Brussels plans to ban the practice of blocking music services from advertising cheaper subscriptions outside the platform. ✓ Apple has never faced a competition fine from the European Commission, although it received a €1.1bn fine from France in 2020 for anti-competitive agreements with two wholesalers.
                    • ✓ Google is appealing against fines of more than €8bn levied by the EU in three separate competition investigations. ✓ Apple defeated a lawsuit by the Fortnite developer Epic Games that claimed that the app store was an illegal monopoly, but Epic in December won a similar cases against Google.
                  • Deception (50%)
                    Apple is reportedly facing a fine of €50 million from the EU over restrictions on access to music streaming services. The European Commission is investigating whether Apple blocked music streamers from telling users about cheaper ways to subscribe outside its app store where it takes a significant cut of revenues.
                    • Apple reportedly faces a fine of €50 million from the EU over restrictions on access to music streaming services.
                  • Fallacies (85%)
                    The article contains an appeal to authority fallacy by stating that the European Commission will say Apple's actions are illegal and go against the bloc's rules that enforce competition in the single market. The author also uses a dichotomous depiction of Spotify as being restricted from informing customers about cheaper ways to subscribe outside of Apple's app store, while not mentioning any other streaming services facing similar restrictions.
                    • The European Commission is investigating whether Apple blocked music streamers from telling users about cheaper ways to subscribe outside its app store where it takes a significant cut of revenues.
                  • Bias (85%)
                    The author Jasper Jolly demonstrates bias by using language that depicts Apple as a monopolistic entity and its practices as anti-competitive. The article focuses on the complaints of Spotify and the potential fine from the EU, while giving little attention to Apple's justifications for its fees and restrictions.
                    • Apple defeated a lawsuit by the Fortnite developer Epic Games that claimed that the app store was an illegal monopoly, but Epic in December won a similar cases against Google
                      • Apple has never faced a competition fine from the European Commission, although it received a €1.1bn fine from France in 2020 for anti-competitive agreements with two wholesalers.
                        • Apple limits choice and competition in its app store by charging a 30% fee on all purchases
                          • Google is appealing against fines of more than €8bn levied by the EU in three separate competition investigations
                            • However, Spotify argues that Apple’s own music streaming service, Apple Music, does not face the same extra cost, giving it an advantage and making the fees anti-competitive.
                              • The European Commission is investigating whether Apple blocked music streamers from telling users about cheaper ways to subscribe outside its app store where it takes a significant cut of revenues
                                • The European Commission will say Apple’s actions are illegal and go against the bloc’s rules that enforce competition in the single market
                                • Site Conflicts Of Interest (50%)
                                  Jasper Jolly has a financial interest in Apple as he is the author of an article published on The Guardian that discusses their music streaming access. He also has a professional affiliation with Spotify as they are mentioned in the article and have been involved in legal disputes with Apple.
                                  • Author Conflicts Of Interest (50%)
                                    Jasper Jolly has a conflict of interest on the topic of music streaming access as he is reporting for The Guardian which owns Spotify.

                                    71%

                                    • Unique Points
                                      • Apple hindered third-party music services on its devices and favored its own Apple Music service
                                      • The findings of the investigation will lead to the Commission accusing Apple of abusing its powerful position and banning its 'unfair trading conditions' regarding its music service subscription policies.
                                      • Smaller internet firms and other tech businesses have long complained of being unfairly limited by these tech giant's business practices. In Apple's case, the Digital Markets Act will require it to allow third-party developers to distribute apps outside the iOS Store and for those apps to bill their customers directly.
                                    • Accuracy
                                      • Apple hindered third-party music services on its devices and favored its own Apple Music service.
                                    • Deception (50%)
                                      The article is deceptive in several ways. Firstly, it reports that the EU has set a fine of 500 million euros for Apple to pay over alleged breaches of competition law without providing any evidence or details about these breaches. This creates an impression that the fine is justified and based on solid facts when in reality there may not be enough evidence to support such a large penalty. Secondly, the article quotes sources who claim that Apple has been accused of abusing its powerful position by restricting apps from informing users about cheaper subscription alternatives outside of its native App Store. However, this is not entirely accurate as the investigation focused on whether Apple had restricted apps from doing so and thus violated EU competition laws. The source claims that the findings will lead to a ban on unfair trading conditions regarding music service subscription policies but there is no evidence provided in support of this claim.
                                      • The article reports that the EU has set a fine of 500 million euros for Apple without providing any evidence or details about these breaches. This creates an impression that the fine is justified and based on solid facts when in reality there may not be enough evidence to support such a large penalty.
                                      • The source claims that Apple has been accused of abusing its powerful position by restricting apps from informing users about cheaper subscription alternatives outside of its native App Store but this is not entirely accurate as the investigation focused on whether Apple had restricted apps from doing so and thus violated EU competition laws.
                                    • Fallacies (85%)
                                      The article contains several fallacies. The author uses an appeal to authority by stating that the European Commission is set to fine Apple about 500 million euros without providing any evidence or citation for this claim. Additionally, the author makes a false dilemma by stating that Spotify was either hindered from billing users directly within its app or used Apple's App Store billing service which takes a cut of up to 30%. This is not an accurate representation of the situation as there are other options available for companies such as Spotify. The author also uses inflammatory rhetoric by stating that if imposed, the fine would be one of the most substantial financial penalties the EU has imposed on a major technology company and follows a series of large contested fines against Google.
                                      • The European Commission is set to fine Apple about 500 million euros
                                      • Spotify was either hindered from billing users directly within its app or used Apple's App Store billing service which takes a cut of up to 30%.
                                    • Bias (85%)
                                      The article reports that the European Commission is set to fine Apple about 500 million euros over alleged breaches of EU competition law. The investigation was launched after Spotify filed a formal complaint in 2019 and focused on whether Apple had restricted apps from informing users about cheaper subscription alternatives outside its native App Store, thus violating EU competition laws.
                                      • In most regions, Apple's App Store rules prohibit companies such as Spotify from billing users for subscriptions directly within the app, making them instead use Apple's App Store billing service, which takes a cut of up to 30%.
                                        • The European Commission is set to fine Apple about 500 million euros over alleged breaches of EU competition law
                                          • The findings of the investigation will lead to the Commission accusing Apple of abusing its powerful position and banning its 'unfair trading conditions' regarding its music service subscription policies.
                                          • Site Conflicts Of Interest (50%)
                                            Dylan Butts has a conflict of interest on the topic of EU antitrust crackdown as he is reporting for CNBC which is owned by Comcast. Comcast also owns NBCUniversal which owns Getty Images and Financial Times.
                                            • Author Conflicts Of Interest (50%)
                                              Dylan Butts has a conflict of interest on the topics of Apple and EU antitrust crackdown. He is an author for CNBC which is owned by Comcast, a company that competes with Spotify in the music services industry.

                                              76%

                                              • Unique Points
                                                • Apple hindered third-party music services on its devices and favored its own Apple Music service
                                                • Spotify filed a formal complaint to regulators in 2019. In most regions, Apple's App Store rules prohibit companies such as Spotify from billing users for subscriptions directly within the app.
                                                • Apple blocked music streamers from telling customers on their phones that they could avoid the commission simply by signing up on Spotify's website
                                                • The European Commission is investigating whether Apple blocked music streamers from telling users about cheaper ways to subscribe outside its app store.
                                              • Accuracy
                                                • The European Commission is set to fine Apple about 500 million euros ($539 million) over alleged breaches of EU competition law.
                                              • Deception (80%)
                                                The article is deceptive because it implies that Apple has not done anything wrong and that the antitrust fine is unjustified. The author uses phrases like 'reportedly set to slap', 'unfairly hindered', and 'no merit' to convey a negative tone towards Apple and its actions, without providing any evidence or quotes from reliable sources. The author also omits important details that could counterbalance the accusations against Apple, such as the fact that Spotify filed a complaint in 2019 after failing to reach an agreement with Apple over its App Store fees and rules. By doing so, the author manipulates the reader's emotions and opinions without giving them a complete picture of what happened.
                                                • The article is deceptive because it does not disclose any sources for its claims or quotes. The reader has no idea where the information about the fine amount, the investigation status, or Apple's statement comes from. This makes it easier for the author to manipulate and mislead readers without being held accountable.
                                                • The article is deceptive because it implies that Apple has not done anything wrong and that the antitrust fine is unjustified. The author uses phrases like 'reportedly set to slap', 'unfairly hindered', and 'no merit' to convey a negative tone towards Apple and its actions, without providing any evidence or quotes from reliable sources.
                                                • The article is deceptive because it omits important details that could counterbalance the accusations against Apple, such as the fact that Spotify filed a complaint in 2019 after failing to reach an agreement with Apple over its App Store fees and rules. By doing so, the author leaves out crucial information that could affect how readers perceive the situation.
                                              • Fallacies (85%)
                                                The article contains two fallacies: Appeal to Authority and Inflammatory Rhetoric. The appeal to authority is evident when the author states that European regulators are preparing to impose a fine against Apple AAPL, -0.84%, after finding that it created an anticompetitive environment by failing to inform iPhone users that cheaper, alternative music-streaming apps were available outside its App Store. The inflammatory rhetoric is evident when the author states that Spotify SA SPOT, +0.30% filed a complaint in 2019 and implies it was unfairly hindered by Apple's actions.
                                                • European regulators are preparing to impose a roughly $50 million euro ($539 million) fine against Apple AAPL, -0.84%, after finding that it created an anticompetitive environment by failing to inform iPhone users that cheaper, alternative music-streaming apps were available outside its App Store.
                                                • The investigation was sparked by a complaint that Spotify SA SPOT, +0.30% filed in 2019.
                                              • Bias (100%)
                                                None Found At Time Of Publication
                                              • Site Conflicts Of Interest (50%)
                                                Mike Murphy has a conflict of interest with Apple Inc. as he is reporting on an antitrust probe against the company.
                                                • Author Conflicts Of Interest (50%)
                                                  Mike Murphy has a conflict of interest on the topic of EU regulators as he is reporting for MarketWatch which is owned by News Corp. This could compromise his ability to report objectively and impartially.