Spotify has recently submitted a new version to the App Store, aiming to provide iOS users in the EU with pricing and feature information regarding the various subscription plans offered by the audio company. The update, currently awaiting approval from Apple, also incorporates a link that allows users to purchase subscription plans directly from Spotify’s website.
Key Takeaway
Spotify has submitted an update to the App Store, aiming to provide iOS users in the EU with pricing and feature information regarding the various subscription plans offered by the audio company. This move comes in the wake of the European Commission’s fine on Apple for anti-competitive practices in the music streaming market.
EU Commission’s Fine on Apple
Earlier this week, the European Commission imposed a substantial fine of €1.84 billion ($2 billion) on Apple for engaging in anti-competitive practices within the music streaming market. Margrethe Vestager, the EU’s competition chief, emphasized that Apple must cease its anti-steering practices and allow music streaming developers to freely communicate with their users, whether through the app, email, or other means of communication.
Spotify’s Response
Spotify, buoyed by the EU Commission’s decision, has taken the step to submit this new version of its app, providing essential information about subscriptions, offers, and a direct link for purchasing. Currently, the app does not display prices of different plans, and instead, shows messages indicating the inability to upgrade to Premium within the app.
Apple’s Compliance Method and Spotify’s Reaction
In January, Spotify had hinted at potential changes related to the Digital Markets Act (DMA), including the ability to subscribe through in-app purchases and purchase individual audiobooks directly from the app. However, Apple released its compliance method, which thwarted many of these anticipated changes. Companies accepting Apple’s changes are required to pay a new “core technology fee” for various downloads from all sources, potentially resulting in significant costs for companies like Spotify with millions of downloads.
Spotify’s Stance and Apple’s Response
Spotify has labeled the EU Commission’s decision as a “powerful message,” indicating that even a “monopoly like Apple” cannot abuse its power to control interactions between companies and their customers. In response, Apple has expressed its intention to appeal the EC’s decision, highlighting Spotify as the “biggest beneficiary” of the App Store and emphasizing its significant market share in Europe’s music streaming market while allegedly not compensating Apple for the services provided.
