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Home News

Spotify Begins Displaying In-App Pricing for EU iPhone Users

…Following Long Legal Back and Forth with Apple

by Joan Aimuengheuwa
August 14, 2024
in News
1
Spotify Begins Displaying In-App Pricing for EU iPhone Users
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Starting today, Spotify will begin displaying in-app pricing information for iPhone users in the European Union, after years of legal issues with Apple. 

This update will allow EU users to view promotional offers and detailed pricing for various subscription tiers directly within the app, which includes seeing the cost of plans after promotional periods end.

However, users will not be able to make purchases directly through links outside the Apple App Store. This decision is in line with Spotify’s strategy to avoid the “music streaming services entitlement” introduced by Apple. 

This entitlement came about after Apple was fined €1.84 billion by EU regulators in March 2024 for abusing its position in the music streaming market. The entitlement would have permitted developers to link to external payment options, though Apple would still take a cut from off-platform sales — a condition Spotify is not willing to accept, labelling Apple’s fees as “illegal and predatory.”

Spotify’s issues with Apple date back to 2019, when it first filed an antitrust complaint against Apple’s App Store policies. As recently as March this year, Spotify accused Apple of obstructing updates similar to the one announced today.

Following months of negotiations, Spotify announced on Wednesday that it has finally secured approval from Apple to display pricing information in its iOS app for EU users. While this adheres to new antitrust regulations specifically targeting music streaming apps under the EU’s Digital Markets Act, Spotify has opted not to engage with Apple’s latest business rules.

The app update will enable Spotify to show the pricing for subscription plans, including those with audiobook streaming options and additional “top-up” hours for audiobook listening. However, Spotify is still barred from linking directly to its website for purchases, as this would require the company to pay Apple a 27% commission on those sales. Instead, Spotify can only refer users to its website in text, without explicitly including the URL.

To coincide with the launch of this pricing information, Spotify is running a promotional campaign in the EU to encourage users to upgrade their subscriptions via its website. The promotion offers the first three months of service for free, after which the subscription fees will apply.

Despite this progress, Spotify maintains that this is just a small step in its ongoing fight for greater autonomy in serving its customers. The company continues to advocate for the ability to link directly from its iOS app to its website for purchases without incurring Apple’s commissions.

“While this is progress, it’s only a small step in the long march towards giving iPhone consumers the basic product experiences they expect and deserve in their apps—experiences that users of other phones already enjoy,” Spotify wrote in a blog post.

The company further criticized Apple for continuing to demand “illegal and predatory taxes” despite the European Commission’s ruling against them.

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  • Joan Aimuengheuwa
    Joan Aimuengheuwa

    Joan thrives at helping individuals and businesses scale via storytelling...

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Tags: appleEU iPhone UsersSpotifySpotify In-App Pricing
Joan Aimuengheuwa

Joan Aimuengheuwa

Joan thrives at helping individuals and businesses scale via storytelling...

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