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Following Alleged Ignored Requests, Spotify Aims to Embed Pricing Details Within Its App for EU Users.
Spotify has presented a revised edition of its iOS application, designed to furnish users within the European Union with in-app subscription pricing details for transactions conducted outside of Apple’s payment infrastructure. However, the fate of this update remains uncertain, pending Apple’s response.
According to TechCrunch, the most recent iteration of the app needs a direct pathway to subscription plans on Spotify’s website, a strategy the company had envisioned to bypass the 30 percent commission charged by Apple for subscriptions facilitated through the App Store.
Instead, European Union users will be prompted to manually access the music platform’s website via a web browser to acquire more economical subscription options.
Spotify had previously submitted an app version with website links last month. However, Apple neither approved the update nor provided any acknowledgement or response to the submission, as the company claimed.
The current version that is attempting to gain approval for includes only the essential pricing and website details, aligning with the European Commission’s directive, which fined Apple €1.84 billion (approximately $2 billion).
The EU’s ruling resulted from a four-year inquiry into the App Store regulations that restricted music services from promoting more affordable subscription options outside the iOS ecosystem. This investigation stemmed from an antitrust grievance raised by Spotify in 2019 regarding the 30 per cent “Apple Tax.”
The ruling concluded that Apple had “exploited its dominant market position” by prohibiting developers from informing their users about cost-effective alternatives.
The ruling mandates that Apple allow music streaming developers to communicate freely with their user base. However, before EU customers can access updated pricing information, Apple needs to provide greenlight to Spotify’s latest app submission. Dustee Jenkins, Spotify’s chief public affairs officer, emphasised, “It’s overdue for the Commission to enforce its decision, enabling consumers to experience tangible, positive outcomes.”
In response to the EU’s Digital Markets Act (DMA), Apple was compelled to implement alterations to its App Store, including introducing third-party app marketplaces and alternative fee structures for developers.
However, Apple’s compliance has been criticised as “malicious,” with the music platform denouncing the company’s alternative Core Technology Fee as “extortion, plain and simple.” Spotify has decided to refrain from adopting Apple’s optional DMA changes.
The EU’s antitrust case stands distinct from the above-mentioned DMA regulations, yet Apple has vehemently opposed both rulings, declaring its intention to appeal the $2 billion fine. Additionally, the European Commission intervened to prompt Apple to rescind its decision to revoke Epic Games’ developer license after Epic CEO and long-standing Apple critic Tim Sweeney criticised the company’s DMA compliance strategies as “hot garbage.”
