Spotify recently backtracked on its earlier plans to offer in-app purchases for iPhone users in the European Union (EU). This comes despite the EU’s Digital Markets Act (DMA) forcing Apple to allow alternative payment methods within apps on its App Store, and a €2 billion fine levied against Apple by the EU.
Spotify vs. Apple: A battle brews in the App Store
Previously, Spotify announced plans to offer subscriptions directly through their iPhone app in the EU, following the European Union’s Digital Markets Act (DMA) and a fine against Apple. This move aimed to bypass Apple’s App Store fees, which can reach up to 30% of in-app purchase transactions.
However, in a recent twist, Spotify has reversed course. They will now only display subscription information and prices within the app, directing users to a web page outside the App Store to complete the purchase. This decision comes despite Apple introducing new rules allowing developers to include links to external payment options.
This strategic shift by Spotify is not merely a response to Apple’s commission fees but also a calculated move in light of the European Union’s scrutiny of Apple’s App Store policies for potential antitrust violations.
By circumventing Apple’s in-app purchase system, Spotify aims to assert greater control over its subscription model and revenue streams, while also challenging the dominance of Apple’s ecosystem.
This decision comes amidst a broader trend of increasing tension between app developers and platform owners, particularly regarding commission rates and app store guidelines.
Spotify is not the only company challenging Apple’s policies; other major players, including Epic Games and Facebook, have also voiced concerns and taken legal action against what they perceive as unfair practices.
The ongoing tension between app developers and Apple regarding the App Store fees and restrictions has been highlighted by this situation. The DMA ruling in the EU is a significant development, which has forced Apple to make changes specific to that region. However, the impact of this ruling on App Store policies worldwide remains uncertain.
(Via The Verge)
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