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Spotify teased up a version of its iPhone app earlier this year that would let users subscribe to ad-free plans directly in the app. Despite dramatic changes forced by the Digital Markets Act and a gigantic $2 billion fine by the EU, Spotify has reportedly changed its tune for now.
Emma Roth at The Verge first reported that Spotify instead will only add language to its app in the EU that describes its various subscription tiers and prices.
If approved by Apple, Spotify app users will be able to follow a link to the web where a subscription can be purchased. Apple has already allowed Spotify and other so-called reader apps that serve content to link from their apps to the web. However, the EU decision this week gives Spotify more flexibility in describing subscription tiers and pricing.
Apple takes 30% of revenue generated by app subscriptions through the App Store for the first year. The cut drops to 15% for subscriptions that are maintained after a year. Apple made that charge in part to satisfy businesses like Spotify.
As part of iOS 17.4, Spotify and other companies that service users in the EU will have new ways to compete with the App Store. Alternative marketplaces are officially supported as mandated by the Digital Markets Act.
So far, however, Spotify’s strategy has been to not play ball when possible despite certain policy changes meant to accommodate competing services. For example, Spotify does not take advantage of Siri integration on iPhone or HomePod despite Pandora and other services doing so.
Zoom out and it’s easy to argue that Apple not being subject to a 15-30% distribution fee for Apple Music on iPhone is an advantage over Spotify. However, a $2 billion fine that nearly rivals the price Apple paid for Beats Music as the foundation for Apple Music seems far from the remedy.
If Spotify’s goal is to pay no commissions to Apple as the platform vendor and Apple’s goal is to preserve its larger App Store business, no actual solution between the two appears to be in sight.
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