Spotify (SPOT.US) lambastes Apple Inc. (AAPL.US) for disregarding European regulators. Will Apple Inc. ultimately be able to escape the "DMA fine"?

The legal compliance dispute between European music streaming giant Spotify (SPOT.US) and American consumer electronics giant Apple Inc. (AAPL.US) appears to be intensifying, with Spotify CEO Daniel Ek recently denouncing Apple Inc., accusing the company of long-term violations and contempt of the European Union's Digital Markets Act (DMA). Ek recently spoke out in an interview, stating that the efforts made by the technology giant that provides consumer electronics products such as iPhones and iPads to comply with the above-mentioned EU law are nothing but a "farce," and their "delaying compliance tactics" are actually undermining the strict constraints of this law on American tech giants. "The EU must prove that the laws that have been passed will be effectively enforced," Ek emphasized in an interview with Bloomberg on Tuesday, revealing that US antitrust regulators are also closely monitoring Apple Inc.'s behavior. EU Competition Commissioner Margrethe Vestager has promised to rule on Apple Inc.'s compliance with the DMA by the end of March, with fines of up to 10% of global annual revenue possible under the law. However, this could escalate tensions with the Trump administration, which last week signed a significant memorandum threatening retaliatory tariffs on excessive penalties. Ek specifically traveled to Brussels to meet with EU Commission officials, urging them to enforce fair access to third-party app stores on Apple Inc. Despite Apple Inc.'s announcement in March to allow access to alternative smartphone app stores on iOS systems, there are extremely stringent terms and new fee structures. Ek criticized: "Apple Inc. makes it impossible for competitors to survive by setting admission barriers and abnormally high commissions." Ek has long been pushing for practical pressure on the EU antitrust authorities to take action against Apple Inc., making it a thorn in Apple Inc.'s side in the European market. After Spotify filed a complaint last year, the EU Commission fined Apple Inc. 1.8 billion (US$2 billion) for "preventing music streaming apps from informing users of lower-priced services outside of the Apple Inc. App Store," and launched a formal investigation into similar violations by Apple Inc. under the DMA. An EU Commission spokesperson confirmed that the investigation into Apple Inc. is ongoing and will be concluded once the case is mature. Behind this conflict, Spotify saw its best year of user growth in 2024 and achieved annual profitability for the first time, with most of its new subscribers coming from the Asian and African markets. On the other hand, Apple Inc. remains deeply embroiled in an antitrust lawsuit with Epic Games, the developer of Fortnite, which has been ongoing for four and a half years. Driven by strong performance growth in 2024 and optimistic expectations for 2025, Spotify's stock price has repeatedly hit new highs. Since 2025, Spotify's stock price on the US stock market has risen by as much as 30%, significantly outperforming the S&P 500 index, and the stock price of Spotify for the full year of 2024 increased by as much as 138%. Apple Inc. declined to comment on Ek's remarks but cited a previous statement expressing "deep concerns" about adult content apps being placed on third-party app stores in a certain EU market. Last year, the EU fined Apple Inc. 1.8 billion for hindering music streaming apps from directing users to lower-priced channels in response to a complaint by Spotify.