The long-standing conflict between Spotify and Apple regarding unfair commissions on in-app purchases and subscriptions, along with Apple’s allegedly anticompetitive practices, has persisted for many years. However, this prolonged dispute appears to be nearing resolution, largely due to a recent U.S. court decision unfavorable to Apple.
Spotify Will Finally Get the Freedom It’s Been Fighting Apple For
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Blog post posted on Spotify Newsroom
The streaming company announced that they had sent an updated version of their Spotify application to Apple, introducing several new features for users in the United States. This update has now been approved.
This change would enable Spotify to openly show various Premium tier prices and include external links for subscription, promote special offers inside the app aimed at helping users save money with transparent pricing. Additionally, it would permit customers to utilize alternative external payment methods instead of being limited to Apple’s in-app purchasing system.
If you’ve attempted to sign up for Spotify Premium on your iPhone previously, you might have realized that adding payment info directly through the app isn’t an option. You’re directed instead to visit Spotify’s site where you can select a Premium package and opt for one of their supported payment options. The updated policy will require you to go to Spotify’s website even when subscribing; however, now you’ll find detailed pricing for various packages inside the app with just a tap redirecting you to their site.
In 2023, Spotify stopped allowing payments via Apple’s in-app purchase system indefinitely because Apple charges a 30% fee for such transactions. By directing customers to subscribe to Spotify Premium directly from their site instead of using the app, Spotify retained full control over the payments. This move not only eliminated the 30% charge imposed by Apple but also allowed subscribers to usually pay lower fees compared to those set within the app, where prices were increased to cover Apple’s commission.
Given these circumstances, Apple opted to prohibit apps from redirecting to external websites for transactions. This recent shift can be attributed to an antitrust lawsuit initiated by Epic Games, the creator of Fortnite, against Apple. In 2021, Apple was mandated to permit applications to guide users towards alternative payment methods. However, the corporation circumvented this directive by mandating that app creators request a specific “entitlement” and imposing additional fees on buys conducted outside their platforms.
This week, U.S. Supreme Court Judge Yvonne Gonzalez Rogers stated that Apple intentionally ignored earlier court directives and ordered the company to modify its App Store policies. The modifications require Apple to permit developers to direct users to external sites for payment processing.
Although these modifications aren’t particularly beneficial for Apple, they present an advantage for applications such as Spotify. Despite the newest update being accessible, the adjustments continue to roll out gradually. Therefore, you may need some time until you notice them on your iPhone or iPad. Our team verified this change and encountered the message: “You’re unable to modify your subscription plan or check pricing within the application right now. It isn’t optimal at the moment.”