Spotify Can Now Show Pricing Details to iPhone App Users in Europe
Written by djfrosty on August 14, 2024
Spotify has been given the green light to include pricing and promotional details inside its app on iPhones for users in the European Union following a decision earlier this year by regulators to fine Apple for breaking competition laws over music streaming.
The European Commission fined Apple nearly $2 billion (1.84 billion euros) in March over its long-held policies preventing outside app makers from telling consumers about cheaper ways to pay subscriptions that don’t involve the iPhone app. [Apple appealed in May.] Spotify and other app makers have complained for years about Apple’s restrictions to outside developers and the up-to-30% fee it charges them on all purchases made through iOS apps.
The Digital Markets Act, a sweeping set of regulations for large tech companies across the 27-nation European Union, went into effect in March. Under the DMA’s provisions, app developers are supposed to be allowed to inform customers of alternative purchasing options and direct them to those offers.
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Starting today (Aug. 14), Spotify has opted into Apple’s “entitlement” policy for music streaming apps, created after the commission’s ruling, and begun listing pricing information inside its app for European users — “something as obvious as it is overdue,” the company said in an updated blog post.
iPhone users in Europe will now be able to see how much each subscription plan costs and what they include. Freemium users looking to upgrade can also see special introductory offers and the pricing once a promotion ends. Spotify will be able to list specifics about audiobook listening and pricing as well.
What European iPhone users won’t see, yet, are workable hyperlinks to purchase subscriptions or other digital goods outside the app. Under its “entitlement” terms, Apple receives a 27% commission on proceeds earned from sales on external websites that are linked-to from inside the app. If someone were to click on the link and then wait a week before actually purchasing the service or goods, then the 27% commission would not apply, according to Apple’s terms.
For now, iPhone users will be instructed to “go to the Spotify website.”
Spotify called it a “small step” and said “all music streaming services in the EU are still not able to freely give consumers a simple opportunity to click a link to purchase in app because of the illegal and predatory taxes Apple continues to demand, despite the Commission’s ruling.”
“The fight continues,” the company added. “iPhone consumers everywhere deserve basic information about how much things cost, when they can take advantage of great deals and promotions, and where to go to buy those things online. If the European Commission properly enforces its decision, iPhone consumers could see even more wins, like lower cost payment options and better product experiences in the app.”