Spotify has submitted a new version of its iOS app to provide users in the European Union with in-app pricing information for subscriptions made outside of Apple’s payment system. The app update aims to comply with the European Commission ruling that fined Apple €1.84 billion, allowing EU users to manually visit Spotify’s website via a web browser to purchase cheaper subscription plans. Apple's compliance with the Digital Markets Act has been described as “malicious” by Spotify, which has refused to adopt Apple’s optional DMA changes. The EU’s antitrust case against Apple and the EU's Digital Markets Act regulations have led to ongoing disputes, with Apple appealing the $2 billion fine and facing intervention from the European Commission regarding its decision to revoke Epic Games’ developer license.
Key Takeaways
- Spotify's latest iOS app update in the EU provides pricing for subscriptions outside of Apple's payment system to comply with European Commission ruling
- Previous app version containing website links was not approved by Apple, leading Spotify to submit a new version with minimum pricing and website information
- Apple faces pressure to enforce the European Commission's ruling and allow music streaming developers to communicate freely with their users
- EU's Digital Markets Act mandated changes to Apple's App Store, introducing third-party app marketplaces and alternative fees for developers
- Apple's compliance with the DMA has been criticized, and it intends to appeal the $2 billion fine imposed by the European Commission
Analysis
Spotify’s submission of an updated iOS app in the EU aims to comply with the EU Commission's regulations, prompting users to purchase subscriptions via the Spotify website to bypass Apple's payment system. This impacts Apple's revenue and highlights the ongoing disputes between the two tech giants. The Digital Markets Act's mandates for Apple's App Store and the EU's antitrust case against Apple underscore the long-term implications for tech market regulations and competition. Short-term consequences include continued tension between Spotify and Apple, with potential repercussions for their market positions. This development may also impact the European Commission's intervention in tech industry practices and its approach to enforcing regulatory compliance.
Did You Know?
- Spotify's latest iOS app update in the EU provides pricing for subscriptions outside of Apple's payment system to comply with European Commission ruling
- Previous app version containing website links was not approved by Apple, leading Spotify to submit a new version with minimum pricing and website information
- EU's Digital Markets Act mandated changes to Apple's App Store, introducing third-party app marketplaces and alternative fees for developers