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EU Plans to Let Spotify Direct Users to Other Payment Options on iPhone

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Apple might soon face a setback in its EU antitrust battle with Spotify, which filed a complaint against the iPhone maker over four years ago.

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EU regulators are planning to force Apple to allow competing music services like Spotify to direct users to payment methods other than the App Store's in-app purchase system within their apps, or face a fine of as much as 10% of its annual sales, according to Bloomberg. The decision is slated to be announced in early 2024, the report says.

Apple currently prevents apps from letting users know about a purchasing method other than the App Store's in-app purchase system within their apps, although it does allow developers to inform customers by email. If and when the EU's order takes effect, Apple would be required to drop this so-called "anti-steering" rule. It's unclear if Spotify will be allowed to accept payments directly within its app, or merely advertise other payment methods.

Spotify has been unwilling to let customers subscribe to its streaming music service for its usual price of $10.99 per month within its iPhone app, as it would receive less due to Apple's 15% to 30% commission on in-app purchases. Spotify has argued that being unable to let iPhone users know about other payment options is anticompetitive.

We will update this story if Apple responds to the report.

Tags: App Store, Spotify

Top Rated Comments

jarman92 Avatar
jarman92
30 months ago

so Spotify gets to freeload off of Apple's success.

stupid move, EU.
It isn't "freeloading" to merely tell users they can sign up elsewhere for less money. Apple's anti-steering rules are by far the most outrageous and indefensible parts of the App Store.
Score: 47 Votes (Like | Disagree)
A
albert421
30 months ago
Then Apple will start slapping everyone with API royalties. And it will just make everything more complicated
Score: 22 Votes (Like | Disagree)
L
lkrupp
30 months ago
Then Spotify should be required to pay a monthly fee for their app to be hosted in the App Store, right? Or do they think Apple should host their app free of charge and they get all the income?
Score: 15 Votes (Like | Disagree)
D
DelayedGratificationGene
30 months ago
Tim said “if the sideloading happens we will just have to bill them another way and it doesn’t have to be like this”. They are not getting off from the platform hosting fees lol. One way or another Apple is getting their money as they rightfully deserve it.
Score: 14 Votes (Like | Disagree)
T
Timster83
30 months ago

so Spotify gets to freeload off of Apple's success.

stupid move, EU.
Right now, Apple wants to freeload off Spotify’s success… that’s why subscription via the app isn’t available.
Score: 13 Votes (Like | Disagree)
Wizard_of_Woz Avatar
Wizard_of_Woz
30 months ago
I bet the EU is a blast at parties.
Score: 12 Votes (Like | Disagree)
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