Spotify Displays Pricing Information in EU iOS App, but Still Subject to Apple Restrictions

Spotify Displays Pricing Information in EU iOS App, but Still Subject to Apple RestrictionsSpotify announced on Wednesday that it has received approval from Apple to display pricing information to EU users within its iOS app. This development was not achieved through Apple's new business rules under the EU's Digital Markets Act, but rather by leveraging a new antitrust regulation specifically targeting music streaming apps in the EU

Spotify Displays Pricing Information in EU iOS App, but Still Subject to Apple Restrictions

Spotify announced on Wednesday that it has received approval from Apple to display pricing information to EU users within its iOS app. This development was not achieved through Apple's new business rules under the EU's Digital Markets Act, but rather by leveraging a new antitrust regulation specifically targeting music streaming apps in the EU.

In March, the EU fined Apple 1.84 billion (approximately 14.44 billion) for violating antitrust rules in the music streaming market on its iOS mobile platform. Following this incident, Spotify and Apple engaged in extensive discussions regarding app updates, ultimately leading to Apple's agreement to allow Spotify to display pricing information for its subscription plans to EU users.

However, despite this progress, Spotify remains subject to certain restrictions imposed by Apple. It's understood that Spotify cannot share links to its website within the app and can only use text to guide users to its official website to subscribe. This is because Apple mandates a 27% sales commission for any in-app subscription links. Furthermore, even without hyperlinks, Apple prohibits the display of text containing "spotify.com."

Despite these limitations, Spotify will proceed with promotional campaigns in the EU, encouraging users to upgrade their subscriptions through its website. While the ability to display pricing information within the iOS app represents a significant step forward for Spotify, it also reflects Apple's control over developer power and operating models within its app store ecosystem.

This incident has reignited discussions about Apple's monopolistic practices in its app store and their impact on developer revenue. The EU's new antitrust regulations have provided more autonomy for companies like Spotify, but Apple's restrictions demonstrate that striking a balance between openness and fairness in the app store ecosystem will remain a crucial issue in the future.