Technology
Spotify's new move: Selling subscriptions and audiobooks in the EU without Apple detours.
New digital EU rules to be leveraged: Music streaming provider plans to sell subscriptions directly to bypass Apple's App Store.
With the entry into force of the new Digital Markets Act (DMA) of the EU, the music streaming provider Spotify plans to sell subscriptions for its services directly to customers, bypassing the Apple App Store.
This regulation takes effect from March 7th and allows Spotify to redirect users through a link in the app to an external page, where they can enter their credit card information, as announced by the market leader in a blog post on Wednesday.
Apple, on the other hand, claims that its App Store business is not subject to DMA regulations. Until now, it has only been possible to obtain apps for iPhones through the company's own App Store. However, developers must pay Apple 30% of digital purchases made within the app, while subscriptions initially incur a 30% fee, later reduced to 15%. These fees cannot be circumvented, as Apple requires the use of its in-app payment system.
Apps like Spotify or Netflix, however, can sell subscriptions outside of the App Store and their customers can then use them on the iPhone without Apple receiving a commission. However, Spotify has been complaining for a long time that Apple does not allow it to inform about prices and locations for external subscription purchases within the app. For several years now, the music streaming provider no longer offers the option to purchase a subscription within the app at a higher price due to the Apple commission.
After a court ruling in the US, Apple must also allow app developers to direct their users to external purchasing options. However, in this case, Apple has set a reduced fee of 27 or 12 percent. The company has not yet announced any plans on how it will implement the DMA regulations.
In a further development, the "Wall Street Journal" reports that Apple is planning new restrictions and fees for Europe. According to the DMA, the company must among other things allow apps from other download sources to be loaded onto the iPhone.
However, Spotify argues that Apple must initially enforce the regulations even in the case of an objection. Olivia Regnier, responsible manager at Spotify, emphasizes that a possible 27% solution would be considered as circumvention of the DMA. The music streaming market leader hopes that the EU Commission will consistently enforce the DMA.
