Spotify CEO Daniel Ek’s Response To Apple’s DMA Rules


Spotify CEO Daniel Ek recently addressed investors regarding Apple’s compliance with the Digital Markets Act (DMA), expressing both criticism and optimism about the new regulations.

Key Takeaway

Spotify CEO Daniel Ek addressed Apple’s compliance with the Digital Markets Act, expressing criticism of the new regulations while also highlighting potential opportunities for the company’s future growth.

Apple’s Compliance with DMA

Apple’s implementation of the DMA has sparked controversy, with Spotify and other companies criticizing the tech giant’s approach. While Apple is technically adhering to the law by opening its app ecosystem to new app stores and alternative payment methods, critics argue that the company’s new Core Technology Fee and commission structure for digital goods and services do not align with the intended spirit of the law, which aimed to promote fair competition.

Spotify’s Response

Ek initially condemned Apple’s solution as a “masterclass in distortion” and expressed concerns about the financial impact on Spotify. However, during the earnings call, he assured investors that the new rules would not negatively affect Spotify’s current business and revenues. He emphasized that the company still has the option to operate under the previous terms, maintaining continuity in the near term.

Potential Opportunities

Despite the initial criticism, Ek highlighted potential “future upsides” resulting from the new regulations. He mentioned the possibility of leveraging the new rules to introduce innovative features such as superfan clubs and in-app purchases for items like audiobooks, which could significantly impact Spotify’s revenues. Ek expressed hope that the European Commission would intervene to enable these opportunities, emphasizing the potential benefits for both consumers and creators.

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