New Rules Impact iOS App Music Streaming
In a significant shift, Apple (NASDAQ:AAPL) has granted Spotify (NYSE:SPOT) the ability to display pricing information within its iOS app for users in the European Union (EU). This decision follows prolonged discussions and regulatory actions earlier this year. The move is part of the EU’s broader efforts to enforce new antitrust guidelines specifically for music streaming apps, separate from Apple’s general business rules under the Digital Markets Act.
Apple faced a substantial fine of €1.84 billion (approximately $2 billion) in March from European regulators for antitrust violations. This fine and subsequent regulatory pressure led to adjustments in how Apple handles competition within its IOS App Store, particularly concerning major streaming services like Spotify.
Pricing Information and App Restrictions
With the new approval, Spotify can now display various pricing details for its services, including subscription plans, digital goods, and its newly added audiobooks section. This includes pricing for subscription plans that incorporate audiobook streaming and options for users to purchase additional hours or individual audiobooks.
However, Spotify is still restricted from including direct links to its website within the iOS app. Any reference to Spotify’s website will avoid direct domain mention to circumvent Apple’s 27% commission fee on transactions made through the app. This policy means that while Spotify can provide information about subscription upgrades and promotions, it cannot facilitate direct purchases or navigations to its website from within the app.
Promotional Efforts and Ongoing Disputes
Spotify plans to leverage this new capability by running a promotional offer in the EU, providing users with the first three months of service free of charge before the subscription fee begins. This promotional strategy aims to drive users to upgrade their plans via Spotify’s website, a practice already allowed on Android devices without similar restrictions.
Despite this progress, Spotify remains focused on its broader goal of allowing in-app links to its website for direct purchases without incurring Apple’s commission fees. The company continues to advocate for a more equitable digital marketplace, arguing that current conditions impose unfair costs on users and limit their purchasing options.
Spotify emphasized that while this new development represents a step forward, it is only a partial solution. The company criticizes the ongoing restrictions as obstacles to providing a user experience comparable to that available on other platforms, such as Android. The battle for more comprehensive changes in app store policies continues as Spotify and other digital service providers push for fairer terms and greater freedom in their app offerings.
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