Spotify has finally secured Apple’s approval to display pricing details in its iOS app for users in the EU, following a prolonged negotiation earlier this year.
This move comes under the framework of the EU’s new antitrust regulations, specifically targeting music streaming apps, rather than Apple’s newly established business rules under the Digital Markets Act.
Earlier this year, Apple was slapped with a hefty fine of €1.84 billion (approximately USD 2 billion) by European regulators for violating antitrust laws. This sparked a series of discussions between Spotify and Apple regarding an update to Spotify’s app that would enable the company to share pricing information with its EU users.
Spotify has now announced that this app update has been greenlit, allowing it to display prices for various offerings, including Spotify subscriptions and digital products like audiobooks, which were recently introduced to its platform.
The pricing information will encompass subscription plans that offer audiobook streaming, additional hours for audiobook listening, and individual audiobook purchases.
However, Spotify won’t be able to include direct links to its website within the app. This is because such an action would obligate the company to pay Apple a 27% commission on sales, a fee Spotify aims to avoid. Consequently, the app can only direct users to Spotify’s website in a general manner, without explicitly stating the domain name or its .com extension. Spotify noted that Apple prohibited the inclusion of the text “spotify.com,” even in a non-hyperlinked format, to circumvent commission payments.
In tandem with this pricing information rollout, Spotify plans to launch a promotional campaign across the EU, encouraging users to upgrade their subscription plans through its website—a process that has always been seamless on Android devices.
The promotion will offer users three free months of service before their subscription takes effect, Spotify added.
