Spotify has announced today that it has been submitting a new version of the App Store. This version displays pricing and feature information on the various plans that the audio firm offers in the European Union. An additional link that allows customers to purchase subscription plans via Spotify’s website is included in the update, which is currently awaiting clearance from Apple.
Apple was hit with a huge fine of €1.84 billion ($2 billion) by the European Commission earlier this week for engaging in anti-competitive conduct in the music streaming industry while operating in the European Union. Margrethe Vestager, the competition chief of the European Union, gave a press conference in which she stated that Apple must cease its anti-steering activities.
“From this point forward, Apple will be required to make it possible for music streaming developers to freely communicate with their own users, whether it be through the app itself, through email, or through any other means of communication,” she stated.
The Verge reports that Spotify has submitted this updated version, which includes information on subscriptions, offers, and a link to purchase those subscriptions and offers. Spotify is pleased with this choice. As of right now, the audio company does not display the prices of the various plans on the app and instead displays statements such as “You are unable to upgrade to Premium within the app.” It is not perfect, as we are aware.
Spotify hinted at a number of modifications that will be implemented in accordance with the Digital Markets Act (DMA) in January. These changes included the option to subscribe to the service through in-app purchases and to purchase individual audiobooks directly from within the app. Nevertheless, Apple announced its compliance technique a few days later, which eliminated the likelihood of a significant number of these modifications.
If a corporation decides to accept Apple’s modifications, they will be required to pay a new “core technology fee” that is associated with multiple downloads from all different sources. Which could result in a significant increase in costs for businesses such as Spotify that have millions of downloads.
On its blog, Spotify referred to this as a “powerful message” that conveys the notion that even “a monopoly like Apple” is not able to “wield power abusively” in order to control the manner in which other businesses engage with their customers.
Apple has stated that it intends to appeal the decision made by the EC and has also stated that Spotify has been “the biggest beneficiary” of the adoption of the App Store. Apple pointed out that Spotify “pays Apple nothing for the services that have helped them become one of the most recognizable brands in the world,” despite the fact that Spotify has a majority of its market share in Europe in the music streaming market.