Spotify and Apple Clash Again Over App Store Fees in the EU

Spotify recently tried to update its iOS app for EU users to show pricing for subscriptions purchased outside Apple's payment system. However, Apple rejected the update.

History of Dispute This isn't the first time these companies have clashed. Previously, Spotify submitted an app with website links, but Apple rejected it. Spotify argues their latest submission complies with the EU's ruling, which fined Apple €1.84 billion for anti-competitive practices.

Why the Block? Apple requires Spotify to use a specific system and pay a commission on purchases made through external links, a rule established in their updated guidelines. The EU, however, recently ruled that Apple must allow music streaming apps to include these links.

Apple Insists on Fees Despite the EU ruling, Apple maintains it can still collect fees on subscriptions purchased outside its system. They argue that using their "Music Streaming Services Entitlement" is mandatory for app approval, even for apps with external links.

Workaround Attempted According to reports, Spotify's latest app for EU users avoids mentioning their website directly for subscriptions. Instead, it guides users to search for the website manually, likely to bypass Apple's 30% commission fee.

Frustration on Both Sides Spotify is unhappy with Apple's decision, claiming they're ignoring both consumer interests and legal obligations. This stems from a complaint Spotify filed in 2019 against Apple's restrictions on informing users about cheaper alternatives.

Limited Changes from Apple The EU's Digital Markets Act (DMA) requires Apple to allow alternative app stores and fee structures. However, Spotify finds Apple's compliance efforts insufficient and refuses to adopt them.

Looking Ahead EU approval remains necessary for EU users to access updated pricing information within the Spotify app. Spotify urges the EU to enforce its ruling for consumer benefit. Apple plans to appeal the €2 billion fine and faces additional scrutiny regarding its app store practices.

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