Spotify Secures Approval to Display Pricing Information in iOS App for EU Users

After a lengthy back-and-forth earlier this year, Spotify has announced that it has received approval from Apple to display pricing information within its iOS app for users in the European Union (EU). However, it’s essential to note that Spotify is not opting into Apple’s new business rules under the EU’s Digital Markets Act. Instead, the company is taking advantage of new antitrust guidelines imposed by the EU specifically for music streaming apps.

Background

In March, Apple was fined €1.84 billion (approximately $2 billion) by European regulators for breaching antitrust rules in the market. Spotify and Apple have also been at odds over an update to Spotify’s app that would allow the music streamer to share pricing information with EU users. Now, with Apple’s approval, Spotify is opting into the music streaming entitlement, which has been implemented in the Spotify app.

What This Means for Users

With this new development, Spotify will be able to display pricing information for various services, including:

  • Spotify subscriptions: Users will see the prices associated with different subscription plans, including the option to upgrade or change their current plan.
  • Digital goods: The company will also display pricing for digital goods, such as audiobooks. This includes the ability to show the pricing for:
    • Subscription plans that include audiobook streaming
    • ‘Top off’ hours users can buy to complete their audiobook listening
    • A la carte audiobook prices

However, it’s worth noting that Spotify will not be able to share a link to its website. This is because doing so would require the company to pay Apple a 27% commission on those sales, which Spotify does not intend to do. Instead, the text in the app will only refer users to Spotify’s website without spelling out the domain name and its .com address.

Spotify’s Response

In response to this development, Spotify released a statement highlighting the progress made but also expressing disappointment that it’s not being able to achieve its ultimate goal. The company said:

"While this is progress, it’s only a small step in the long march towards giving iPhone consumers basic product experiences they expect and deserve in their apps — experiences that users of other phones already enjoy. Unfortunately, Spotify and 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 the app because of the illegal and predatory taxes Apple continues to demand, despite the Commission’s ruling."

Spotify’s Ongoing Efforts

The company has expressed its intention to continue fighting for what it wants: a way to link from its iOS app to its website for purchases without paying a commission to Apple. This move is seen as a small step towards achieving Spotify’s agenda of servicing customers through its own commission-free payments platform.

Conclusion

Spotify’s approval to display pricing information in its iOS app for EU users marks a significant development in the ongoing saga between the music streaming service and Apple. While this progress is welcome, it’s clear that there’s still much work to be done to achieve Spotify’s ultimate goal of providing seamless payment experiences for its customers.

In the meantime, Spotify will continue to run promotions in the EU to encourage users to upgrade their subscription plans via its website. These promotions will offer the first three months of the service for free before the subscription kicks in.

The move is a testament to Spotify’s commitment to delivering value to its customers and providing them with the best possible experience. As the company continues to navigate the complex landscape of antitrust regulations, one thing is clear: Spotify is not backing down from its pursuit of a commission-free payments platform.

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