Spotify’s EU price update could overhaul Apple’s App Store rules

Spotify does to test Apple’s commitment to new EU legislation with a new update to its app. The law, called the Digital Markets Act (DMA), requires major tech companies like Apple to let developers inform users of alternative ways to make purchases without bypassing the App Store.

Spotify is pushing the boundaries of the DMA

According to a tweet from Spotify’s official News However, Apple rejected this, prompting Spotify to publicly criticize the company for defying European law.

Spotify claims that the update complies with DMA guidelines. They further emphasized that the update only reflects “the bare minimum set out in the European Commission ruling.” The EU is already investigating Apple, Meta and Google for allegedly favoring their own services and charging extra fees to developers. Therefore, Spotify’s update acts as a test case for the effectiveness of the DMA. If Apple continues to block this, the EU could take further action to promote fairer competition in app stores.

How will Apple respond to Spotify’s latest test?

This isn’t the first clash between Spotify and Apple over App Store fees and policies. Spotify has long argued that Apple’s 30% commission on in-app purchases is unfair and stifles competition. If users were to subscribe to Spotify Premium directly through the app, Apple would cut corners. This is why Spotify wants to direct users to its website to subscribe, thus avoiding the App Store tax.

The DMA could be a win for Spotify and other developers, potentially forcing Apple to loosen its control over the App Store and give it more freedom over pricing and user communications.

Apple’s response to Spotify’s latest challenge remains to be seen. The EU can exert further pressure to ensure compliance with the DMA. This, coupled with increasing global scrutiny from developers and regulators, could force Apple to reevaluate its commission structure.