Spotify recently sent a new version of its iOS app in the European Union with in-app pricing information. However, in a surprising twist, Apple decided to reject it. The reason is that Apple wants Spotify to accept its updated rules on the Music Streaming Services Entitlement. That would require Spotify to still pay Apple a 30% entitlement commission for in-app purchases. Spotify says it won’t adopt Apple’s revised changes. The company’s representative Jeanne Moran told TheVerge: “Apple has once again defied the European Commission’s decision. It rejected our update for attempting to communicate with customers about our prices unless we pay Apple a new tax,”.
Apple Wants Spotify to Keep Paying 30% Commission
Following the EU’s DMA, Spotify wanted to allow users to purchase plans directly from its app. Despite the EU’s fine on Apple’s shoulders of €1.8 billion for abuse of power, the Cupertino-based firm found a way to bypass the rules. The iPhone maker keeps charging Spotify a 30% commission. In the end, Spotify users on iOS in the EU will need to go outside of the music streaming app and purchase a subscription through their website. Spotify made the following statement through X:
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“Apple continues to break European law,” and unfortunately that means we still can’t give EU consumers the information they need and the choices they deserve in our app.”
Apple’s spokesperson Hannah Smith provided the message sent from Apple to Spotify. It says: “This entitlement is required even if your app does not include an external link (nor does it require that you offer an external link). We will, however, approve version 8.9.33 after you accept the terms of the Music Streaming Services Entitlement (EEA) and resubmit it for review.
According to TechCrunch, the latest version of the app does not come with a direct link to subscription plans on Spotify’s website. This method would allow the company to bypass the 30 percent cut Apple takes on subscriptions made via the App Store. Instead, EU users will be directed to manually visit Spotify’s website via a web browser to purchase cheaper subscription plans.
We are curious to see how this situation will change in the coming weeks. Stay tuned for more news.
