The ongoing feud between Spotify and Apple has flared up once more. On Thursday, Spotify announced that Apple had rejected its latest app update for iOS users in the European Union (EU). This update aimed to comply with a recent ruling by the European Commission (EC) by displaying pricing information directly within the app for EU users.
The EC ruling, issued in March 2024, stemmed from a long-standing antitrust case against Apple. The EC found that Apple’s App Store practices stifled competition in the music streaming market, specifically targeting Spotify. A key aspect of the ruling mandated that Apple allow app developers to inform users about alternative subscription options outside of the App Store.
Spotify’s update reportedly included basic pricing information and details on how to subscribe directly on Spotify’s website, adhering to the minimum requirements outlined in the EC ruling. However, according to Spotify, Apple rejected the update, claiming it violated their App Store guidelines.
“Apple has once again defied the European Commission’s decision, rejecting our update for attempting to communicate with customers about our prices unless we pay Apple a new tax,” said a Spotify spokesperson in a statement. “Their disregard for consumers and developers is matched only by their disdain for the law.”
Spotify’s accusation centers on Apple’s recent policy change related to the Digital Markets Act (DMA), another EU regulation that came into effect in April 2024. The DMA allows app developers to offer alternative payment methods within their apps, potentially bypassing Apple’s in-app purchase system and its associated commission fees.
However, Apple has implemented a system where developers utilizing alternative payment methods must pay a “Core Technology Fee” to Apple. Spotify argues that this fee essentially negates the benefits of offering alternative payment options and unfairly punishes developers.
Apple has yet to comment on the situation, but its stance throughout the EC case suggests a potential motive to maintain control over in-app purchases and the associated revenue stream. This latest rejection further fuels the debate around app store dominance and the impact on consumer choice and developer freedom.
The EU has yet to weigh in on this specific incident, but it highlights the ongoing enforcement challenges associated with the DMA and similar regulations. With both Spotify and Apple locked in a high-profile battle, it remains to be seen how the EU will intervene and whether this will lead to a broader investigation into Apple’s App Store practices.
This situation has several potential consequences:
- Impact on Consumers: EU users may be limited to in-app subscriptions with potentially higher prices due to Apple’s commission fees.
- Escalating Legal Battles: Spotify’s public criticism could trigger further legal action against Apple, potentially involving the EC and other regulatory bodies.
- Changes to App Store Policies: Apple might be forced to revise its App Store guidelines or the Core Technology Fee structure to comply with EU regulations.
The outcome of this clash will be closely watched by the tech industry and regulators worldwide. It could set a precedent for how app stores operate and the power they hold over developers and ultimately, consumers.
