Top 3 Key Points:
- Apple now allows Spotify to show pricing and direct users to its website.
- EU fined Apple $2B for anti-competitive practices against Spotify.
- Spotify still can’t include direct purchase links in the app.
In a significant shift, Apple is now permitting Spotify to display subscription pricing, including promotional offers, within its app. Additionally, Spotify can direct users to its website for sign-ups, marking a notable change from Apple’s previous stance.
This development follows Apple’s earlier rejection of a similar Spotify app update just three months ago. The reversal comes on the heels of a $2 billion fine imposed on Apple by the European Union for engaging in anticompetitive practices against Spotify, a direct competitor in the music streaming market.
A Brief Background
For years, Spotify has accused Apple of unfair competition, claiming that Apple Music holds an advantage by allowing iPhone users to subscribe directly within its app. In contrast, Spotify would have had to pay Apple a 30% commission if it enabled in-app purchases, and it was even barred from showing subscription prices without offering in-app purchases.
Spotify’s formal antitrust complaint to the EU in 2019 eventually led to a prolonged investigation. In March this year, the EU concluded that Apple was guilty of anticompetitive behavior and imposed a hefty fine.
Apple’s Change of Heart
Earlier this year, Spotify attempted to update its app to display subscription prices, but Apple initially blocked the update. Now, Apple has reversed its decision, allowing Spotify to finally display this crucial information within the app. Spotify announced that iPhone users in the EU will see pricing details in the app and be informed that they can purchase directly from Spotify’s website.
The Battle Isn’t Over
However, Apple still restricts Spotify from including clickable links to its website within the app. This means users must manually enter the website address to make purchases, a barrier that Spotify deems unnecessary and unfair. Spotify continues to urge the EU to mandate that Apple allow direct links for a smoother user experience.
Final Thoughts
This development is a positive step toward resolving the long-standing dispute between Apple and Spotify. However, Apple’s refusal to allow clickable links leaves the door open for further legal challenges. Allowing direct links could have fully resolved the issue, but by holding back on this point, Apple risks further scrutiny and legal action.
