Spotify’s EU pricing update could reshape Apple’s App Store rules

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Spotify is testing Apple’s commitment to the new EU law with a new update to its app. The law, called the Digital Markets Act (DMA), requires large tech companies like Apple to let developers inform users about alternative ways to purchase, bypassing the App Store.

Spotify pushes the limits of the DMA

According to a tweet from Spotify’s official news X account, the company has submitted an update to its iOS app that would “display basic pricing and website information.” However, Apple rejected this, prompting Spotify to publicly criticize the company for defying European law.

Spotify argues its update adheres to the DMA guidelines. They further emphasized that the update only displays “the bare minimum outlined under the European Commission’s ruling.” The EU is already investigating Apple, Meta, and Google for allegedly favoring their own services and charging extra fees to developers. Therefore, Spotify’s update acts as a test case for the DMA’s effectiveness. If Apple continues to block it, the EU might take further action to promote fairer competition in app stores.

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How will Apple react to Spotify’s latest test?

This isn’t the first clash between Spotify and Apple over App Store fees and policies. Spotify has long argued that Apple’s 30% commission on in-app purchases is unfair and hinders competition. If users were to subscribe to Spotify Premium directly through the app, Apple would take a cut. This is why Spotify wants to direct users to its website to subscribe, avoiding the App Store tax.

The DMA could be a win for Spotify and other developers, potentially forcing Apple to loosen its control over the App Store and allow more freedom with pricing and user communication.

Apple’s response to Spotify’s latest challenge remains to be seen. The EU may exert further pressure to ensure compliance with the DMA. This, coupled with growing global scrutiny from developers and regulators, might force Apple to re-evaluate its commission structure.

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