Spotify has announced that it has now received approval from Apple to display pricing information in its iOS app for users in the EU, following some back and forth between the two companies. While Spotify is not opting into Apple’s new business rules under the EU’s Digital Markets Act, it is taking advantage of new antitrust guidelines imposed by the EU specifically for music streaming apps.
This development comes after Apple was fined €1.84 billion by European regulators for breaching antitrust rules in the market. Spotify and Apple have also been in disagreement over an update to Spotify’s app that would allow the music streaming platform to share pricing information with EU users.
With the app update now approved, Spotify will be able to display pricing for things like subscriptions and digital goods, including its collection of audiobooks. This includes showing the pricing for subscription plans that include audiobook streaming, as well as additional hours users can purchase for audiobook listening and a la carte audiobook prices.
However, Spotify will not be able to include a direct link to its website in the app. This is because doing so would require the company to pay Apple a 27% commission on those sales, which Spotify is not willing to do. Instead, the app will only be able to refer users to Spotify’s website without explicitly mentioning the domain name and its .com address.
Along with the launch of pricing information, Spotify will also run a promotion in the EU to encourage users to upgrade their subscription plans through its website. This is a step towards Spotify’s goal of servicing its own customers through its own commission-free payments platform. However, the company still aims to fight for the ability to link from its iOS app to its website for purchases without paying a commission to Apple.
In a blog post announcing the changes, Spotify expressed that while this progress is a small step, it is still far from achieving its desired outcome. The company believes that iPhone consumers should have the same product experiences as users of other phones, and that Apple’s demand for commissions on in-app purchases is illegal and predatory. Spotify intends to continue advocating for a fair and equitable solution.
