Spotify will start including information about subscription pricing and promotions within its iOS app in Europe by capitalising on changes to Apple’s App Store rules forced by European law. However, there will be no links to where users can make payments on Spotify’s website because the streaming service continues to object to some elements of Apple’s revised rules.
“iPhone consumers in the EU will now see pricing information for Spotify in the app and the fact that they can go to our website to purchase items directly”, the streaming service explains. However, “while this is progress, it’s only a small step in the long march towards giving iPhone consumers basic product experiences they expect and deserve in their apps”.
Spotify has long objected to Apple’s rules regarding in-app payments and the sign-posting of payment options outside of an app. In-app payments must be taken using Apple's commission-charging transactions systems and, previously, alternative payment options, where an app developer can avoid Apple's commissions, couldn’t be highlighted or sign-posted.
The latter rule is often dubbed the anti-steering provision and that is what Apple has been forced to change in Europe, partly because of the new EU Digital Markets Act, but also because of an investigation by European competition regulators instigated by a complaint from Spotify. The EU regulator concluded that the anti-steering provision violated competition law, fining Apple €1.8 billion and ordering it to change its rules.
While appealing that ruling, earlier this year Apple nevertheless published new App Store terms for music services in a Music Streaming Service Entitlement document. The new terms allow music services to communicate information about subscription packages and link through to external payment options. However, Apple will still charge a commission on third party transactions that begin in an iOS app.
Spotify objects to the commissions on third party transactions, arguing that too violates EU law. Last week Apple unveiled another set of revised terms altering the commissions element, although not removing it. Spotify was scathing about that set of terms as well. It has now signed up to the original revised terms, rather than the revised revised terms.
However, it is avoiding paying Apple any commissions by simply telling users to go to the Spotify website to buy a subscription rather than directly linking them to a payment page. Meanwhile, it will continue to put pressure on EU regulators, demanding they formally state that Apple’s commission clauses in the revised terms - both sets - violate EU law.
“Spotify and all music streaming services in the EU are still not able to freely give consumers a simple opportunity to click a link to purchase in app because of the illegal and predatory taxes Apple continues to demand, despite the Commission’s ruling”, Spotify's statement adds.
“The fight continues. If the European Commission properly enforces its decision, iPhone consumers could see even more wins, like lower cost payment options and better product experiences in the app”.