The ongoing battle between Spotify and Apple over user data and app store practices has taken a fresh turn. Spotify on Thursday accused Apple of rejecting its latest app update for EU users, which aimed to display clear pricing information for premium subscriptions within the app.
A History of Friction: The Root of the Conflict
This dispute has its roots in the European Union’s (EU) Digital Markets Act (DMA). The DMA, implemented earlier in 2024, mandates that app developers provide clear and transparent information about pricing within their apps, offering users a choice for in-app purchases and subscriptions without being forced to use Apple’s own payment system.
Spotify’s Contention: Fighting for Transparency
Spotify argues that Apple’s 27% commission on in-app purchases unfairly inflates subscription costs for EU users. To comply with the DMA and offer users more transparency, Spotify submitted an update that displayed pricing information within the app. This update, however, was reportedly rejected by Apple.
“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. Their disregard for consumers and developers is matched only by their disdain for the law,” a spokesperson for Spotify said in a statement.
Apple’s Response
Apple said it will approve the new version of the app after Spotify accepts the terms of the Music Streaming Services Entitlement in the European Economic Area (EEA), and resubmit it for review.
“This entitlement is required even if your app does not include an external link,” Apple said in a response to Spotify about the app update.
European Commission Response
“We are currently assessing whether Apple has fully complied with the decision,” a spokesperson for the European Commission said, adding the Commission will also assess any changes implemented by Apple to its App Store business terms under the Digital Markets Act.
What Happens Next?
The current situation presents a roadblock for Spotify in complying with the DMA’s pricing transparency requirements for EU users. Spotify has expressed its intention to work with the European Commission, the EU’s executive branch, to enforce the DMA regulations.
The Potential Impact: A Wider Industry Issue
This clash extends beyond just Spotify and Apple. The outcome of this dispute could set a precedent for how app store giants handle pricing transparency and in-app purchase options, particularly within the EU. Other app developers may also be watching closely to see how the situation unfolds.
Here is what to note:
Under Apple’s proposal, Spotify and other streaming services can include links to their websites to inform users of payment options outside its App Store and the company would charge a 27 percent commission on transactions made through a link.
Spotify did not include the in-app link in the update submitted to Apple.
The Fight for User Choice: A Look Ahead
The battle between Spotify and Apple highlights the ongoing tension between app developers, app store operators, and user choice. As regulators like the EU push for more transparency and user control over in-app purchases, we can expect to see further developments in this ongoing saga.