Apple is reportedly set to pay €500 million (around $539 million USD) to the European Union for allegedly breaking EU law over access to its Apple Music streaming services, according to five people with direct knowledge of the long-running investigation.

This hefty fine stems from an investigation triggered by a complaint from Spotify, alleging Apple used anti-competitive practices to stifle music streaming rivals on the iPhone platform.

Here's a quick breakdown:

• Reason for fine: The EU accuses Apple of hindering other music streaming apps from informing users about cheaper alternatives to Apple Music within the App Store.
  
  
• Fine amount: €500 million, though this pales in comparison to the initial €40 billion the EU originally proposed.
  
  
• Apple's response: Not officially confirmed yet. Historically, Apple has appealed similar fines in the past.
  

The fine, which is in the region of €500mn and is expected to be announced early next month, is the culmination of a European Commission antitrust probe into whether Apple has used its own platform to favour its services over those of competitors.

The probe is investigating whether Apple blocked apps from informing iPhone users of cheaper alternatives to access music subscriptions outside the App Store. It was launched after music-streaming app Spotify made a formal complaint to regulators in 2019.

The Commission will say Apple’s actions are illegal and go against the bloc’s rules that enforce competition in the single market, the people familiar with the case told the Financial Times. It will ban Apple’s practice of blocking music services from letting users outside its App Store switch to cheaper alternatives.

Brussels will accuse Apple of abusing its powerful position and imposing anti-competitive trading practices on rivals, the people said, adding that the EU would say the tech giant’s terms were “unfair trading conditions”.

The news comes from a Financial Times report published on February 18, 2024.