Yesterday we learned that Spotify decided to pass on Apple’s new EU terms that would allow it to use alternative payment methods due to the Core Technology Fee. Instead, it submitted an app update with pricing info and details on how to subscribe outside of the App Store without giving users a link. Now Spotify says Apple has unjustly blocked the update and again “defied the European Commission”.
Update 6:46 am PT: Apple has shared with 9to5Mac that Spotify must use the EEA Music Streaming Services Entitlement to include “calls to action” to purchase outside the App Store.
Spotify reiterated its belief yesterday that Apple is aiming to “punish developers with new fees” as part of its rules to use an alternative payment method in the EU. That’s why the music giant chose to submit an update and stick with the legacy App Store system.
However, Apple didn’t approve the update – due to Spotify including price information and instructions on how to sign up outside the App Store – saying it would need to request an entitlement and pay Apple a 27% commission.
Spotify is arguing since it didn’t include a link in the latest update submission, it shouldn’t have to get an entitlement and pay the commission. And it shouldn’t be forced to use an entitlement and a link to “communicate with consumers through in-app links”.
Top comment by Graham Jones
We all know Spotify will get their way, because the EU are using this law to enforce protectionism. It was designed with that in mind, as it allows those in Brussels to set the terms each time Spotify doesn’t like someone. Some say that Spotify are struggling to be profitable, yet they can afford a $307m sponsorship of Barcelona FC’s Nou Camp Stadium. I have little sympathy for them, because they want everything their way. Apple are entitled to some sort of fee, and it should be substantial for the effort they’ve put into building iOS and the iPhone, without which Spotify wouldn’t exist. What I would say is that there needs to be a negotiation between the tech industry and the EU over the amount charged, but it’s acceptable for Apple to seek a fee. But, I’m absolutely sure Spotify will not be happy even then, because they’re that sort of company. Maybe the US government should take more of an interest and speak to the EU about their practices and threaten to do the same with EU companies. Then we might see some common sense applied to this situation, because I’m getting fed up reading headlines about Spotify whining about Apple, doing what they’re entitled to do.
A Spotify spokesperson shared this statement with 9to5Mac this morning:
“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.”
We’ve reached out to Apple for its perspective on the matter. In any case, it looks like Spotify and Apple will be continuing to battle it out around how the DMA should be implemented in the EU.
As a refresher, last month, Apple was hit with a $2 billion fine in the EU for “abusive” App Store rules for music streaming services. Along with the fine, the European Commission also said Apple must relax its anti-steering rules. However, Apple has rejected the ruling and is appealing the case.
Top image by 9to5Mac
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