Spotify Shares Its Vision for In-App Purchases Ahead of EU Regulation

[MacRumors]

Spotify has shared its vision for bringing in-app payments back to its iOS app, once Apple is forced to comply with Europe's looming digital market regulations.

The streaming service shared mockups of what it expects its app to look like, including information about pricing, subscription offers and in-app audiobook purchases. Spotify has not allowed customers to sign up for a Spotify Premium subscription or make other in-app payments in order to avoid paying Apple's fees, but that is likely to change soon, in the EU at least.

The European Union's Digital Markets Act (DMA), which went into effect on November 1, 2022, requires "gatekeeper" companies to open up their services and platforms to other companies and developers. The DMA will have a big impact on Apple's platforms, and is likely to result in Apple making major changes to the ‌App Store‌, Messages, FaceTime, Siri, and possibly more.

For example, the law will prevent the App Store from charging a fee for apps to promote their own products and services, or force apps to use a specific payments mechanism. The act is due to roll out on March 7.

Writing in a newsroom blog post, Spotify laid out its ideal scenario ahead of the act:

For years, even in our own app, Apple had these rules where we couldn't tell you about offers, how much something costs, or even where or how to buy it. We know, pretty nuts. The DMA means that we'll finally be able to share details about deals, promotions, and better-value payment options in the EU. And an easier experience for you means good things for artists, authors, and creators looking to build their audiences of listeners, concert-goers, and audiobook-loving fans. What's more? All of this can now come without the burden of a mandatory ~30% tax imposed by Apple, which is prohibited under the DMA.

We'll soon be able to give you information in the Spotify app about prices for things like Premium subscriptions and audiobooks. And we will be able to communicate clearly with you in the Spotify app about new products for sale, promotional campaigns, superfan clubs, and upcoming events, including when items like audiobooks are going on sale.

Soon we expect that if you want to buy a Premium subscription or an audiobook, or are looking to seamlessly upgrade from Individual to a Duo or Family plan to save money, you will be able to do so with just a couple of easy clicks.

MacRumors found code strings in a recent Spotify beta indicating that the company was testing bringing back in-app purchases. However, a lot of what Spotify envisions remains theoretical, given that Apple may have evasive strategies to comply more loosely with the requirements, like how it responded to the anti-steering rule handed down by a U.S. court in the Apple vs. Epic Games legal battle.

https://twitter.com/x/status/1750111838656770078

Over the years, Apple and Spotify have had a long running dispute over Apple's ‌App Store‌ policies, with multiple public conflicts over app and subscription fees and app rejections due to Spotify's attempts to skirt the up to 30 percent cut that Apple takes from purchases.

Apple offers no alternative billing from the ‌App Store‌. There are two exceptions, however, including South Korea and the Netherlands. Regulators in these countries have forced Apple to allow some apps to use third-party payment providers.

Article Link: Spotify Shares Its Vision for In-App Purchases Ahead of EU Regulation

 

[krspkbl]

so jealous of the EU. it's silly that i can't see prices in app, get charged more for subscribing in the app versus the website, and actually having to go to the website to buy things.

apple is too greedy and ruining the experience of users. they are making it awkward to use certain apps just so they can make more money.

 

[ItsASpider]

It's great to see that Spotify can finally promote its own product without having to fund a competitor.

 

[PlayUltimate]

Apple built the playground; Apple should decide what the rules are.

 

[spazzcat]

So now free users will now have constant popups to give them money.

 

[spazzcat]

It's great to see that Spotify can finally promote its own product without having to fund a competitor.

Or build a platform to support their app and users.

 

[ryanyoungmq]

Double-edged sword. Apple needs some sort of compensation to host the store and curate the apps, but these large companies don't want to pay for the right to be hosted... 30% is steep for an ongoing subscription, but no business can operate forever doing something for free

 

[Rogifan]

What they need to show is the place in the app where you securely store your payment credentials. This makes it look like every time you want to do something you have to enter credit card information. Dumb.

 

[DelayedGratificationGene]

Hey Spotify spend all that extra money to get sideloading but you are not getting a free ride using the greatest platform ever invented. It costs money to keep this the greatest platform for you so you are still going to pay for that privilege. Again a perfect analogy….”I demand Walmart let me use their shelf space to sell my product! I don’t care what overhead expense Walmart has!”….this Spotify Epic nonsense has to stop and the Supreme Court did stop it. Enough already.

 

[6787872]

great job, EU.

break apple into pieces and force them to open it all up.

if they refuse to comply, jail them all.

engineers, even timmy himself if that's what it takes.

time to play hardball.

 

[ScreenSavers]

I still feel that Apple should be able to choose how to run their App Store and IAP system. They developed the software. They built the hardware. And users chose to buy it. Companies like Spotify act like they own as much of the App Store service as Apple does, and then complain it's not "playing fair" when Apple charges a fee for use of the service they created. If you don't like it, don't develop for it. If consumers don't like it, don't purchase their devices. So much complaining from people who choose to invest in the service, fully knowing the rules.

 

[ItsASpider]

Double-edged sword. Apple needs some sort of compensation to host the store and curate the apps, but these large companies don't want to pay for the right to be hosted... 30% is steep for an ongoing subscription, but no business can operate forever doing something for free

They already get that compensation; developers pay to be in the store. If they think that's not enough, they're free to bump up that fee. If they don't like that they have to distribute free apps, they're free to stop that too. But Apple has 0 costs to Spotify's subscription (or Netflix, or Disney, or ...) yet gets 30% of its income while Spotify has to pay the bill for streaming, to artists, etc. If anything is unfair, that is. If Apple wants 30% of the income, they should also pay 30% of the costs.

 

[Abazigal]

It's great to see that Spotify can finally promote its own product without having to fund a competitor.

They have had the ability to do so on android for years without needing to pay Google a cent (since Google waived their cut in the play store). What’s stopping Google from launching said feature then?

It’s funny that Spotify basically seems to be admitting that their fortunes rest entirely on the spending power of iOS users.

Their 1 billion dollar debt becomes due in another 2 years. They are getting desperate, they know it, and I believe Apple knows it too. 😈

 

[gerardnll]

It feels like they will be getting 30% more income and we, users, we'll get the same price. I'll go buy some Spotify shares.

 

[DelayedGratificationGene]

“Hey Target if you think I’m paying you for shelf space you’re crazy”…”I demand you give me eye level space and sell my product and charge me nothing for that!”

 

[contacos]

I think a lot of people will be "disappointed" by what Apple is going to offer (I honestly don't mind how it is right now).

This is from 9to5mac:

iPhone app sideloading: Apple reportedly plans to charge fees and review apps downloaded outside of the App Store​

 

[ItsASpider]

They have had the ability to do so on android for years without needing to pay Google a cent (since Google waived their cut in the play store). What’s stopping Google from launching said feature then?

It’s funny that Spotify basically seems to be admitting that their fortunes rest entirely on the spending power of iOS users.

What are you talking about? Google allows apps to link to secondary payment methods outside Google Play. What feature would Google have to implement? The vendor lock-in?

 

[DelayedGratificationGene]

Tim said in court awhile back that this sideloading risks/extra expense etc do not have to be and now we will just have to charge you another way.

 

[ItsASpider]

It feels like they will be getting 30% more income and we, users, we'll get the same price. I'll go buy some Spotify shares.

They won't be getting 30% more, they'll just be able to charge the same price they do everywhere else.

 

[SonsofAres]

apple is too greedy and ruining the experience of users. they are making it awkward to use certain apps just so they can make more money.

Your info:
iPhone 15 Pro Max - Black - 512GB
Watch Series 9 - Midnight


If you're giving them your money, you're part of the problem as you've so petulantly described it.

 

[DelayedGratificationGene]

It feels like they will be getting 30% more income and we, users, we'll get the same price. I'll go buy some Spotify shares.

Actually your expense will be going UP for the extra sideloading expense PLUS the commission still be charged through fees. I hope you didn’t buy those Spotify shares.

 

[ItsASpider]

I think a lot of people will be "disappointed" by what Apple is going to offer (I honestly don't mind how it is right now).

This is from 9to5mac:

iPhone app sideloading: Apple reportedly plans to charge fees and review apps downloaded outside of the App Store​

Yeah, but that's never going to fly. This is them pulling the same kind of nonsense as their "Safari on iOS, macOS and iPadOS are 3 different browsers" argument to keep Safari outside the scope of the DMA. The EU is just going to call - and rightfully so - ******** on that approach. The OS itself also falls under the DMA, they have to open that up too.

 

[stocklen]

This is such a NON-PROBLEM.

Nothing stopping people signing up for Spotify via their website and im surprised that almost everyone didnt do it this way anyway.

Meanwhile Spotify gets a free run on using Apple's proprietary app store and benefiting for that without paying.

So.. before they couldnt direct people to the website to sign up? And...? There are thousands of apps that exist where you have to first be a customer of the service having paid via a web browser then use the app simply to log in.

Spotify just want as many windows of opportunity to charge people and if the App Store was one where they made subscription revenue then that seems fair of Apple to me.

Why does Spotify even need the capability of selling subscriptions via the app anyway?

 

[SmugMaverick]

Apple built the playground; Apple should decide what the rules are.

That's because they force you to play in that playground.

Imagine if they did that on Macs.

 

[paulovsouza]

Spotify better literally put their money where their mouth is, and pay their artists more. I really doubt the 30% “Apple tax”, is what was preventing them for paying their artists, especially since they don’t pay the 30% by not having any in app purchases.