Apple Approves Spotify’s Pricing Information Update Following European Commission’s Ruling
Spotify has adjusted its approach to in-app purchases in the European Union, planning to display pricing information within the app and direct users to its subscription options upon approval of a new update by Apple. This change is a response to the European Commission’s ruling, which accused Apple of abusing its dominant position in the music streaming app distribution sector.
The European Commission’s investigation revealed that Apple’s anti-steering rules restricted developers from informing users about cheaper music subscription services available outside the app. As a result, the commission mandated Apple to eliminate these restrictions for music streaming apps, prompting Spotify to make the necessary adjustments.
Pending approval, Spotify will showcase pricing and features of its Premium subscriptions to iOS users in the European Union and provide links redirecting users to the Spotify website for subscription purchases.
Earlier this year, Spotify had plans to introduce in-app purchases on its iOS app in the EU but delayed the implementation after Apple announced its intentions to comply with the EU’s Digital Markets Act. Apple aims to establish new business terms enabling developers to list their apps on alternative app stores and pay reduced commissions.
Apple recently permitted reader apps such as Spotify, Netflix, and Kindle to include links to their websites within apps. Despite this, Apple retains control over the language used by these apps when directing users to external links, prohibiting them from disclosing subscription prices.
Apple intends to challenge the European Commission’s decision, accusing Spotify of trying to “rewrite the rules of the App Store.” Spotify maintains that it is in line with the commission’s ruling and hopes Apple approves its pricing information update, facilitating transparency for EU users.
Analyst comment
Positive news. If the update is approved, Spotify will be able to display pricing details and direct users to its website for subscription purchases. This will provide greater transparency to EU users and potentially increase competition in the music streaming app distribution industry.
