EU Plans to Let Spotify Direct Users to Other Payment Options on iPhone

[MacRumors]

Apple might soon face a setback in its EU antitrust battle with Spotify, which filed a complaint against the iPhone maker over four years ago.

EU regulators are planning to force Apple to allow competing music services like Spotify to direct users to payment methods other than the App Store's in-app purchase system within their apps, or face a fine of as much as 10% of its annual sales, according to Bloomberg. The decision is slated to be announced in early 2024, the report says.

Apple currently prevents apps from letting users know about a purchasing method other than the App Store's in-app purchase system within their apps, although it does allow developers to inform customers by email. If and when the EU's order takes effect, Apple would be required to drop this so-called "anti-steering" rule. It's unclear if Spotify will be allowed to accept payments directly within its app, or merely advertise other payment methods.

Spotify has been unwilling to let customers subscribe to its streaming music service for its usual price of $10.99 per month within its iPhone app, as it would receive less due to Apple's 15% to 30% commission on in-app purchases. Spotify has argued that being unable to let iPhone users know about other payment options is anticompetitive.

We will update this story if Apple responds to the report.

Article Link: EU Plans to Let Spotify Direct Users to Other Payment Options on iPhone

 

[truthsteve]

so Spotify gets to freeload off of Apple's success.

stupid move, EU.

 

[albert421]

Then Apple will start slapping everyone with API royalties. And it will just make everything more complicated

 

[Wizard_of_Woz]

I bet the EU is a blast at parties.

 

[jarman92]

so Spotify gets to freeload off of Apple's success.

stupid move, EU.

It isn't "freeloading" to merely tell users they can sign up elsewhere for less money. Apple's anti-steering rules are by far the most outrageous and indefensible parts of the App Store.

 

[MR. SucksALot]

So sick of seeing EU in headlines.

The dictators of participation trophies.

 

[Apple Fan 2008]

It isn't "freeloading" to merely tell users they can sign up elsewhere for less money. Apple's anti-steering rules are by far the most outrageous and indefensible parts of the App Store.

It’s freeloading because they are using Apple’s platform and don’t want to pay Apple to use that platform. The only reason this is happening is because Spotify just wants to make more money themselves.

 

[ryan102]

Apple has had it's way for far too long. It's now a size as a company that's too big to ignore and their constant rules to lock down everything over the years is now coming back to haunt them. Bit by Bit, the EU is now going to force Apple to comply, and ironically it's being met by a wall of silence from both the White House & rest of the world because I would imagine it's hard to feel sorry for a company worth $3trillion.

For now Apple's cash held outside of the US is safe but I'd imagine the EU/US will soon attempt to force Apple to bring it back onshore causing billions to go into treasuries on both sides of the Atlantic.

 

[lkrupp]

Then Spotify should be required to pay a monthly fee for their app to be hosted in the App Store, right? Or do they think Apple should host their app free of charge and they get all the income?

 

[DelayedGratificationGene]

Tim said “if the sideloading happens we will just have to bill them another way and it doesn’t have to be like this”. They are not getting off from the platform hosting fees lol. One way or another Apple is getting their money as they rightfully deserve it.

 

[ddtmm]

so Spotify gets to freeload off of Apple's success.

stupid move, EU.

Or vice versa.

 

[Timster83]

so Spotify gets to freeload off of Apple's success.

stupid move, EU.

Right now, Apple wants to freeload off Spotify’s success… that’s why subscription via the app isn’t available.

 

[now i see it]

Apl will get its money another way -

 

[DelayedGratificationGene]

Again I’m calling Target and demand they put my products on those new eye level shelves they just installed and if they charge me for it I’ll just tear it up!

 

[sw1tcher]

Apple currently prevents apps from letting users know about a purchasing method other than the App Store's in-app purchase system within their apps, although it does allow developers to inform customers by email. If and when the EU's order takes effect, Apple would be required to drop this so-called "anti-steering" rule. It's unclear if Spotify will be allowed to accept payments directly within its app, or merely advertise other payment methods.

so Spotify gets to freeload off of Apple's success.

stupid move, EU.

How exactly is allowing Spotify or anyone else to tell their subscribers that they can pay through other means besides directly through the app freeloading off Apple?

How is this any different than how Spotify (or Netflix) currently works where you cannot subscribe to their premium (i.e. paid) services through their app but have to pay through their websites?

 

[RemedyRabbit]

Wonder if we’ll see the day when music library data is standardised and freed from the constraints of a single app

 

[DelayedGratificationGene]

Apple will be getting its deserved money. This seems to be brushed aside by the media and the app vendors. Aint happening folks. Apple getting their money lol

 

[lkrupp]

It isn't "freeloading" to merely tell users they can sign up elsewhere for less money. Apple's anti-steering rules are by far the most outrageous and indefensible parts of the App Store.

I’m hoping you agree that Spotify should pay for being hosted on the App Store then. Do you actually think Apple should be forced to carry apps free of charge on their platform and the developers don’t pay anything for being there? If Apple can’t get anything for providing the platform then what’s fair about that?

 

[DelayedGratificationGene]

First off hardly anyone going to risk sideloading. Second, if they do Apple will charge them another way. Simple stuff.

 

[lkrupp]

Apple has had it's way for far too long. It's now a size as a company that's too big to ignore and their constant rules to lock down everything over the years is now coming back to haunt them. Bit by Bit, the EU is now going to force Apple to comply, and ironically it's being met by a wall of silence from both the White House & rest of the world because I would imagine it's hard to feel sorry for a company worth $3trillion.

For now Apple's cash held outside of the US is safe but I'd imagine the EU/US will soon attempt to force Apple to bring it back onshore causing billions to go into treasuries on both sides of the Atlantic.

So you think developers shroud be able to put their apps on the App Store and not pay Apple one red cent for doing so? Really?

 

[Michael Scrip]

Spotify has been unwilling to let customers subscribe to its streaming music service for its usual price of $10.99 per month within its iPhone app, as it would receive less due to Apple's 15% to 30% commission on in-app purchases. Spotify has argued that being unable to let iPhone users know about other payment options is anticompetitive.

Wait a minute...

Eight years ago (!) Spotify started telling their subscribers to stop paying through the App Store and instead subscribe through the Spotify website directly.

And just a few months ago Spotify stopped allowing App Store IAP subscriptions altogether.

So as of right now there shouldn't be any iPhone customers paying through the App Store and thus being subjected to Apple's fees.

All this announcement does is to let Spotify finally tell people inside the Spotify app to go to the website for the remaining iPhone users on Earth who have never heard of Spotify...

Will this finally make Spotify happy?

 

[fabbydabby1]

Then Spotify should be required to pay a monthly fee for their app to be hosted in the App Store, right? Or do they think Apple should host their app free of charge and they get all the income?

Then that would be Apple’s choice

 

[fabbydabby1]

Wait a minute...

Eight years ago (!) Spotify started telling their subscribers to stop paying through the App Store and instead subscribe through the Spotify website directly.

And just a few months ago Spotify stopped allowing App Store IAP subscriptions altogether.

So as of right now there shouldn't be any iPhone customers paying through the App Store and thus being subjected to Apple's fees.

All this announcement does is to let Spotify finally have a link inside the Spotify app for the remaining iPhone users on Earth who have never heard of Spotify...

It’s called having a choice

 

[sw1tcher]

Apple currently prevents apps from letting users know about a purchasing method other than the App Store's in-app purchase system within their apps

Again I’m calling Target and demand they put my products on those new eye level shelves they just installed and if they charge me for it I’ll just tear it up!

Not even the same thing.

A similar analogy would be Target only accepting payments with a Target credit card or Target gift card. No cash payments; no check payments; no non-Target co-branded Visa, Mastercard, American Express, or Discover credit cards.

 

[lkrupp]

Then Apple will start slapping everyone with API royalties. And it will just make everything more complicated

And if they do you can bet your paycheck that those same regulators will attempt to engage in price regulation. Apple will have to charge what regulators determine is a fair price. Wage and price regulation is about as anti-captialist as it gets with companies being told what and how much they can charge for their products and services.