Apple Finally Capitulates
After extensive negotiations earlier this year, Spotify just announced that it has received approval from Apple to display pricing information in its iOS app for users in the EU. This move is not part of Apple’s new business rules under the EU’s Digital Markets Act, but rather a result of new antitrust regulations specifically targeting music streaming apps imposed by the EU.
Apple typically takes a 30% commission on subscriptions and in-app purchases made through apps distributed via its platform.
Spotify, like many other companies, has criticized this fee structure, arguing that it is anti-competitive. Spotify contends that Apple’s commission forces them to either raise prices for consumers subscribing through the App Store or absorb the cost themselves. Apple also took measures to block Spotify’s ability to display their normal pricing info.
Back in March, Apple was fined €1.84 billion (nearly $2 billion USD) by European regulators for violating antitrust rules. Spotify and Apple have also clashed over a Spotify app update that would allow the company to share pricing details with EU users.
Now, Apple has approved Spotify’s decision to opt into the music streaming entitlement, and the updated language is live in the Spotify app. This allows Spotify to display pricing for its subscriptions, digital goods, and its newer collection of audiobooks. This includes plans with audiobook streaming, as well as options for users to purchase additional listening hours or individual audiobook titles.
However, Spotify will not be able to include a direct link to its website in the app, as doing so would require paying Apple a 27% commission on those sales—something Spotify has chosen to avoid. Instead, the app will only refer users to Spotify’s website without explicitly stating the domain name or .com address. Spotify revealed that Apple even prohibited the use of “spotify.com” in text, even when not hyperlinked, to circumvent the commission fees.
To coincide with the launch of this pricing information, Spotify will run a promotion in the EU encouraging users to upgrade their subscription plans through its website—a practice it has long been able to do on Android without any issues.