After much controversy earlier this year, Spotify said on Wednesday that it had received permission from Apple to display pricing information on its website in its iOS app for users in the EU. The company is not agreeing to Apple’s new business rules under the EU’s Digital Markets Act, but is instead taking advantage of new antitrust rules the EU has imposed specifically on music streaming apps.
In March, European regulators fined Apple €1.84 billion (nearly $2 billion) for violating antitrust rules in the market. Spotify and Apple have also repeatedly clashed over an update to the Spotify app that would have allowed the music streamer to share pricing information with EU users.
Spotify has now been approved to participate in the music streaming program, with wording appearing in the Spotify app. That means the company will be able to display prices for things like Spotify subscriptions and digital goods, including its recently added audiobook collection.
Restrictions and Ongoing Challenges
Spotify won’t be able to link to its website, however, as that would require the company to pay Apple a 27% commission on sales, something the company has no intention of doing. Instead, in-app text will only be able to direct users to Spotify’s website, without including the address. Spotify has said that Apple won’t allow it to include “spotify.com” text, even if it’s not a hyperlink, to avoid paying the commission.
Along with the launch of the pricing information, Spotify will be running a promotion in the EU to encourage users to upgrade their subscription plans through its website — information that Spotify has always been able to show on Android without issue.
The promotion will offer the first three months of service for free before the subscription starts, adds NIX Solutions. We’ll keep you updated on any further developments in this ongoing dispute.
The move is a small step toward Spotify’s goal of serving its customers through its own payment platform without paying a commission. But the streamer is determined to keep fighting for what it really wants: the ability to click from the iOS app to its website to make purchases without paying Apple’s commission.
“While this is progress, it is only a small step towards giving iPhone consumers the core experiences they expect and deserve in apps – experiences that users of other phones already enjoy,” the company said in a statement announcing the changes. “Unfortunately, Spotify and all music streaming services in the EU are still unable to freely provide consumers with the simple ability to tap a link to make an in-app purchase because of the illegal and predatory taxes that Apple continues to demand despite the Commission’s ruling,” the statement said.