Spotify will allow in-app purchases for subscriptions, audiobooks on iPhone in Europe after March DMA deadline

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Starting in March, Spotify users in Europe will be able to purchase audiobooks and subscription plans from within the music-streaming app as a result of the region's new competition law for Big Tech, the Swedish company said on Wednesday.

The move will help the company avoid Apple's 30 percent fee for purchases through its App Store, which has long been a source of contention between app developers and the tech giant.

Spotify has been embroiled in a legal battle for years over allegations that it was forced to raise the price of its monthly subscription to cover costs associated with Apple's App Store rules.

“For years Apple had these rules that we couldn't tell you about offers, how much something costs, or even where or how to buy it,” Spotify said in a blogpost.

“The DMA (Digital Markets Act) means we will finally be able to share details about deals, promotions and better value payment options across the EU.”

Under the DMA, which all big tech companies must comply with by March 7, companies are obliged to treat their own products and services like competitors.

Bloomberg News reported in November that Apple planned to challenge the European Union's decision to put the entire App Store on the block's new digital antitrust list.

On Tuesday, Apple asked a London tribunal to dismiss a nearly $1 billion class action lawsuit brought on behalf of more than 1,500 app developers over its App Store rules.

Apple was also criticized by Meta CEO Mark Zuckerberg, who described the App Store's policies and fee structure as problematic and a conflict of interest.

“We're always interested in helping developers distribute their apps, and the new options will drive even more competition in this space,” Meta said Wednesday.

“Developers deserve more ways to easily get their apps out to the people who want them.”

© Thomson Reuters 2024


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