Apple Vs. Spotify: iPhone Maker Fights $1.95B EU Fine Over App Store Practices
Portfolio Pulse from Shivani Kumaresan
Apple Inc. (NASDAQ:AAPL) is appealing a $1.95 billion fine imposed by the EU for allegedly undermining fair competition from music-streaming services like Spotify Technology SA (NYSE:SPOT). The EU's decision mandates Apple to allow music-streaming apps to inform users about cheaper deals outside its App Store. Spotify has adjusted its app to comply with the ruling. The European Commission is prepared to defend its decision in court. Apple argues that there is no credible evidence of consumer harm. This is part of ongoing legal battles between Apple and EU regulators.
May 21, 2024 | 4:40 pm
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Apple is appealing a $1.95 billion fine from the EU for allegedly undermining competition from music-streaming services like Spotify. The EU mandates Apple to allow apps to inform users about cheaper deals outside its App Store.
The fine and regulatory changes could negatively impact Apple's stock in the short term due to potential legal costs and changes in App Store revenue dynamics.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Investors can gain exposure to Apple stock via Technology Select Sector SPDR Fund (NYSE:XLK). Apple's ongoing legal battles with the EU could impact the fund's performance.
Apple's legal issues with the EU could negatively impact the performance of XLK, which has significant exposure to Apple stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Spotify has adjusted its app to comply with the EU's antitrust ruling against Apple, which mandates that music-streaming apps can inform users about cheaper deals outside the App Store.
Compliance with the EU ruling could benefit Spotify by potentially lowering subscription costs and attracting more users, positively impacting its stock.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80