Spotify to Allow In-App Purchases for Subscriptions, Audiobooks on iPhone in Europe After March DMA Deadline

Spotify will be able to avoid Apple's 30 percent fee for purchases made via the App Store once the EU's DMA regulations go into effect in March.

By Reuters | Updated: 24 January 2024 19:43 IST

Spotify to Allow In-App Purchases for Subscriptions, Audiobooks on iPhone in Europe After March DMA Deadline

Photo Credit: Bloomberg

Spotify users currently have to make purchases via the company's website

Highlights

Spotify does not allow users to make purchases via an iPhone
This will change in March when the EU's DMA rules go into effect
Spotify will soon avoid Apple's 30 percent fee on App Store purchases

Spotify users in Europe from March will be able to buy audiobooks and subscription plans from within the music-streaming app as a result of the region's new competition law for Big Tech, the Swedish company said on Wednesday.

The move will help the company avoid Apple's 30 percent fee for purchases through its App Store, which has long been a source of contention between app developers and the tech giant.

Spotify has for years been in embroiled in a legal battle, alleging that it was forced to raise the price of its monthly subscriptions to cover costs tied to Apple's App Store rules.

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"For years Apple had these rules where we couldn't tell you about offers, how much something costs, or even where or how to buy it," Spotify said in a blogpost.

"The DMA (Digital Markets Act) means that we'll finally be able to share details about deals, promotions, and better-value payment options in the EU."

Under the DMA, which all Big Tech firms must comply with by March 7, companies are obligated to treat their own products and services like they do rivals'.

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Apple plans to challenge the European Union's decision to put all of App Store into the bloc's new digital antitrust list, Bloomberg News had reported in November.

On Tuesday, Apple asked a London tribunal to throw out a mass lawsuit worth around $1 billion brought on behalf of more than 1,500 app developers over its App Store rules.

Apple had also drawn criticism from Meta CEO Mark Zuckerberg who called App Store policies and fee structure as problematic and causing a conflict of interest.

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"We've always been interested in helping developers distribute their apps, and new options would add more competition in this space," Meta said on Wednesday.

"Developers deserve more ways to easily get their apps to the people that want them."

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