Spotify said today that it has submitted a new version of its App Store that shows pricing and feature information for the audio company’s different plans in the European Union. The update, which is subject to Apple’s approval, also includes a link for users to purchase subscription plans from the Spotify website.
Earlier this week, the European Commission fined Apple a whopping €1.84 billion ($2 billion) for anti-competitive behavior in the music streaming market. At a press conference, EU competition chief Margrethe Vestager said Apple must stop its counter-steering practices.
“From now on, Apple will have to allow music streaming developers to communicate freely with their users – whether that’s within an app, via email or any other means of communication,” she said.
What Spotify’s app will look like if Apple approves its changes Image Source: Spotify
Encouraged by the decision, Spotify submitted this new version, which includes links to information about subscriptions, offers, and purchases, The Verge reports. The audio company currently does not display the prices of different plans on the app and displays a message like “You cannot upgrade to Premium in the app.” We know this isn’t ideal. “
In January, Spotify revealed a series of changes regarding the Digital Markets Act (DMA), including the ability to make subscriptions via in-app purchases and purchase individual audiobooks directly from the app. However, Apple released its compliance methodology days later and eliminated the possibility of many of the changes.
If a company accepts Apple’s changes, they must pay a new “core technology fee” associated with multiple downloads from all sources. This could increase the bill for a company like Spotify, which has millions of downloads.
Spotify called it a “powerful message” on its blog that sends a signal that even “monopolies like Apple” cannot “abuse their power” to control how other companies interact with customers.
In response, Apple said it plans to appeal the EC’s decision and said Spotify has been the “biggest beneficiary” of the App Store. Apple noted that Spotify enjoys the majority of market share in the European music streaming market and that “Apple does not have to pay anything to purchase the services that have helped them become one of the most recognized brands in the world.”
