Following a period of regulatory scrutiny and negotiation, Spotify has been given the green light by Apple to include subscription and product pricing details within its iOS app for European Union users. This development stems from recent antitrust guidelines introduced by the EU intended to level the playing field for music streaming services operating in the region.
European regulators previously imposed a significant fine of €1.84 billion (approximately $2 billion USD) on Apple for violating antitrust laws. At the heart of this issue was a dispute between Apple and Spotify regarding the ability for the music streaming service to communicate prices directly to consumers within the app.
Spotify has now announced their latest app update has received approval, enabling them to freely display prices for their various services, including the standard subscription options and the company’s growing collection of audiobooks. This comprises presenting subscription plans featuring audiobook streaming, add-on hours for audiobook completion, and individual prices for audiobooks.
Despite these advancements, Spotify will not be including a direct link to its website within the app. A direct web address could obligate Spotify to pay Apple a 27% commission on any subsequent sales. To bypass this fee, the updated in-app communications will merely point users toward Spotify’s website for additional information and purchases without specifically mentioning the Spotify domain.
To promote this shift, Spotify is initiating a campaign for EU users to upgrade their plans through the Spotify website, a capability that has always been unrestricted on Android. The introductory offer includes a three-month free period before the regular subscription fees commence.
While Spotify views this as a step forward, the company remains committed to seeking further independence by establishing a payment system that does not require the payment of commissions to Apple. The ultimate goal for Spotify and other music streaming services in the EU is to provide customers with a straightforward means of making in-app purchases—a feature that other mobile platforms already allow without these constraints.
Spotify plans to continue advocating for consumer choice and fair competition, aiming to replicate across iOS what other smartphone users already benefit from. This move signifies a minor victory for Spotify in the broader landscape of app economy regulations, but the company emphasizes that the journey towards a fully equitable market is far from over.
