After a lengthy battle with Apple, Spotify has secured permission to display pricing information within its iOS app for users in the European Union (EU). This move marks a victory for the music streaming giant and aligns with new EU antitrust guidelines targeting music streaming services. However, the fight for complete control over in-app purchases continues.
Earlier this year, Spotify and Apple clashed over an update that would allow Spotify to show pricing information for subscriptions and audiobooks within the iOS app. This conflict stemmed from Apple's App Store policies that previously restricted music streaming services from displaying pricing transparency.
Fortunately, a recent EU ruling fined Apple for breaching antitrust laws in the music streaming market, according to 9to5Mac. This paved the way for Spotify to leverage new EU guidelines specifically designed for music streaming platforms.
As a result, the Cupertino tech giant has finally approved Spotify's request to display pricing information within the app.
Related Article: Spotify Introduces New 'Basic' Plan, Revisiting Old Premium Features
With the new update, Spotify users in the EU can now see pricing details for various services within the app. This includes subscription plans (including those with audiobook access), "top off" hours for audiobooks, and individual audiobook purchase prices.
However, a crucial limitation remains. Spotify cannot include a direct link to its website for subscription purchases. Doing so would trigger a 27% commission fee for Apple, which Spotify refuses to pay.
As a workaround, the Swedish media service provider can only inform users that pricing details can be found on its website, without explicitly stating the domain name which is spotify.com.
To incentivize users to subscribe directly through its website, Spotify has launched a special promotion in the EU. This promotion offers three free months of service to new subscribers, according to TechCrunch.
While Spotify celebrates this victory as a small step in the right direction, the company remains committed to achieving its ultimate goal: establishing a commission-free payment platform within its app and enabling direct links for purchases.
"Unfortunately, Spotify and all music streaming services in the EU are still not able to freely give consumers a simple opportunity to click a link to purchase in the app because of the illegal and predatory taxes Apple continues to demand, despite the Commission's ruling," Spotify said.
Spotify acknowledges that this is just the beginning to giving iPhone users the "basic product experiences" they deserve in iOS apps.
The fight is far from over, but Spotify's recent win demonstrates the growing influence of EU regulations in promoting a more open and competitive app market.
Back in June, Spotify introduced HiFi audio which will require users to pay a monthly fee of $5. At the same time, it also ditched the new subscription tier.
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