Spotify will now show EU iPhone users pricing info within the app
But it still can't include direct links to its website for purchases.
Spotify's tenacious five-year battle against Apple's App Store rules has finally paid off—at least partially. The music streaming giant has won the right to display in-app pricing for iPhone users in the European Union (EU), a victory stemming from their gutsy 2019 antitrust complaint.
At the core of this prolonged dispute was Apple's policy requiring a 30% commission on all in-app purchases and subscriptions. Spotify had filed an antitrust complaint with the EU over these App Store rules arguing that this forces them to either inflate prices, operate at a significant disadvantage, or avoid in-app subscriptions entirely, potentially stifling user growth.
Spotify subsequently removed the ability to subscribe to their services from inside the app to avoid Apple's commission. This meant they also couldn't share subscription information within the app.
The EU eventually sided with Spotify, slapping Apple with a €1.84 billion ($2 billion) fine in March 2024 for market abuse, in a particularly tumultuous year for the tech giant that saw a 4.1% drop in its share value.
In a concession to the EU's fine, Apple introduced a new "Music Streaming Services Entitlement" for the European Economic Area (EEA), which allows third-party services to provide information about purchases available on the developer’s site, though not a direct purchase link.
Additionally, Apple rolled out new developer terms that permit EU developers to link to external payment options—but with a 20% commission on off-platform sales, even if the user never clicks the link. The fees associated with this option are so steep that many developers are unlikely to use it.
After some back and forth with Apple, Spotify eventually settled for the "Music Streaming Services Entitlement." This means iPhone users in the EU can now view promotional offers, subscription pricing, and even audiobook pricing within the Spotify app. But it's not all smooth sailing. Spotify still can't directly link to its website or even mention "spotify.com." Talk about walking on eggshells.
As a countermove, Spotify is offering three months of free service for EU users who upgrade via their website - a small step toward servicing its customers through its own commission-free payments platform.
As regulators scrutinize big tech, we might see more moves toward openness. But for Spotify, this is just one battle in their war for commission-free, direct website links.
