Spotify to display subscription pricing in its EU app
What's the story
Spotify is changing its tune in the European Union by opting not to offer in-app purchases. Instead, the music streaming giant will provide pricing details within the app and direct users to its subscription packages. This move follows the European Commission's decision to fine Apple €1.84 billion for "abusing its dominant position" in the market. The Commission discovered that Apple's anti-steering rules stopped developers from letting users know about "alternative and cheaper music subscription services available outside of the app."
Legal
European Commission's ruling on Apple's anti-steering rules
Margrethe Vestager, the European Commission's Competition Chief, declared at a press conference that Apple's practice of blocking developers from sharing info on alternative subscription services is "illegal." She demanded that Apple scrap its anti-steering provisions for music streaming apps and let developers "communicate freely with their own users," including sharing pricing details within their apps. Apple, however, plans to appeal the ruling and accused Spotify of trying to "rewrite the rules of the App Store."
Steps
Spotify's response to the ruling and future plans
Seizing the opportunity, Spotify now plans to inform EU-based iOS users about its Premium subscription costs and perks. If Apple gives the green light, Spotify will add links in its app that guide users to its website for subscription purchases. Initially, Spotify wanted to enable in-app purchases for its EU-based iOS app but changed its mind after Apple unveiled plans for compliance with the EU's Digital Markets Act (DMA).
Impact
Spotify alarmed by Apple fee
Apple's new terms let developers use alternative app stores as well as pay lower commissions. However, the firm also imposes a €0.50 fee for each yearly app install after one million downloads. This is a potentially hefty expense for popular freemium apps like Spotify.