EU set to fine Apple €500m over music streaming misconduct
Lars Mucklejohn
Sun, 18 February 2024
The Financial Times reported that the fine, worth roughly €500m (£428m), is expected to be announced early next month.
The European Commission is reportedly due to hit Apple with its first ever fine against the company following an antitrust investigation into its music streaming business.
The Financial Times reported that the fine, worth roughly €500m (£428m), is expected to be announced early next month, citing sources with knowledge of the matter.
It is understood to be part of an antitrust probe launched in 2019 after a complaint from Spotify, which is looking at whether Apple blocked apps from telling iPhone users about cheaper music streaming services outside the App Store.
The Financial Times reported that the commission would rule Apple’s actions are illegal and ban the firm from continuing the practice.
The commission is reportedly due to accuse Apple of abusing its powerful status in the market and perpetuating anti-competitive trading practices.
Brussels narrowed the scope of its probe into the tech giant last year and withdrew a charge claiming that it pressured developers to use Apple’s in-app payment system.
If imposed, the fine would be one of the EU’s biggest penalties against a Big Tech firm. In 2018, Brussels fined Google a record €4.3bn for abuse of dominance over Android phones.
Apple’s previous fines in Europe include a €1.1bn penalty in France for alleged anti-competitive practices that was revised to €372m on appeal.
Apple declined to comment when approached by City A.M.
In a statement last year Apple said it was “pleased” Brussels had narrowed the scope of its investigation, adding that it would address concerns while encouraging competition.
The company added: “The App Store has helped Spotify become the top music streaming service across Europe and we hope the European Commission will end its pursuit of a complaint that has no merit.”
The commission did not respond to a request for comment by City A.M.
Lars Mucklejohn
Sun, 18 February 2024
The Financial Times reported that the fine, worth roughly €500m (£428m), is expected to be announced early next month.
The European Commission is reportedly due to hit Apple with its first ever fine against the company following an antitrust investigation into its music streaming business.
The Financial Times reported that the fine, worth roughly €500m (£428m), is expected to be announced early next month, citing sources with knowledge of the matter.
It is understood to be part of an antitrust probe launched in 2019 after a complaint from Spotify, which is looking at whether Apple blocked apps from telling iPhone users about cheaper music streaming services outside the App Store.
The Financial Times reported that the commission would rule Apple’s actions are illegal and ban the firm from continuing the practice.
The commission is reportedly due to accuse Apple of abusing its powerful status in the market and perpetuating anti-competitive trading practices.
Brussels narrowed the scope of its probe into the tech giant last year and withdrew a charge claiming that it pressured developers to use Apple’s in-app payment system.
If imposed, the fine would be one of the EU’s biggest penalties against a Big Tech firm. In 2018, Brussels fined Google a record €4.3bn for abuse of dominance over Android phones.
Apple’s previous fines in Europe include a €1.1bn penalty in France for alleged anti-competitive practices that was revised to €372m on appeal.
Apple declined to comment when approached by City A.M.
In a statement last year Apple said it was “pleased” Brussels had narrowed the scope of its investigation, adding that it would address concerns while encouraging competition.
The company added: “The App Store has helped Spotify become the top music streaming service across Europe and we hope the European Commission will end its pursuit of a complaint that has no merit.”
The commission did not respond to a request for comment by City A.M.
Elliot Gulliver-Needham
Sun, 18 February 2024
The Financial Times reported that a German banker, who was hired in 2021 as an executive director, the rank below managing director, was given the title 'head of loan trading', but was allegedly told not to actively use the title.
Morgan Stanley has been accused of making up a fake job title for one of its employees in an attempt to trick EU regulators into believing it had moved top execs to Europe to meet post-Brexit rules.
The Financial Times reported that a German banker, who was hired in 2021 as an executive director, the rank below managing director, was given the title ‘head of loan trading’, but was allegedly told not to actively use the title.
In a German court case, which is hearing the appeal to his dismissal from Morgan Stanley, the banker said he had been told by his superior that his title “only existed on paper”.
Instead, he said he had been given the title solely to meet regulatory requirements, as the European Central Bank has pushed international banks to move top staff managing European businesses to the continent after the UK left the European Union.
The banker claimed that his job had been to find and sell distressed European loans, rather than overseeing a trading desk, giving him more ability to impact the bank’s risk profile.
Changes to Germany’s employment law since Brexit mean that material risk-takers can be fired more easily than normal employees, meaning that the misleading job title has left the banker more vulnerable to dismissal.
The bank’s arguments were rejected by the court, which ruled that his formal position was not enough to qualify him as a material risk-taker, which should instead be decided by actual tasks and competencies.
The court added it was not convinced that the banker was given relevant “tasks, responsibilities and competencies” and ruled that, legally, “he was no risk-taker”.
While the court case does not name the bank, sources with knowledge of the case told the Financial Times it was Morgan Stanley.
Morgan Stanley was contacted for comment on the report.
Last month, Morgan Stanley reported that its profits had missed analyst expectations, due to paying over $500m in one-time charges over investigations by US authorities.
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