EU Grants Spotify’s ‘Wish’ in 2019: Implications for Users | – Times of India

Europe’s Digital Market Act (DMA), which comes into effect on March 7, has provided a respite to Spotify. Users in the region will be able to buy audiobooks and receive direct communications about offers as well as plans within the music-streaming app. Most importantly for the Swedish music company, the act will help it avoid Apple’s 30% fee for purchases through its App Store – something that has long been a source of contention between app developers and the tech giant.
The company has said that the users in Europe will be able to “experience a new Spotify” where they will be able to see all subscription pricing, promotions or deals and make purchases within the app.
Spotify has been in a legal battle since 2019 when it first filed the case against Apple’s 30% tax it levies on in-app purchases. It alleged that this rule forced Spotify to raise the price of its monthly subscriptions to cover costs tied to App Store rules.
“For years Apple had these rules where we couldn’t tell you about offers, how much something costs, or even where or how to buy it. The DMA means that we’ll finally be able to share details about deals, promotions, and better-value payment options in the EU,” Spotify said in a blog post.

The Stockholm-based company said that people in other markets will “continue to encounter frustrating roadblocks because of Apple’s ridiculous rules” and that it will continue its fight for similar rules in other countries.
Why this ‘fight’ may not be easy for Spotify
While Apple is making changes in the EU, similar changes in other markets may be difficult either due to the absence of such laws or Apple’s new compliance rules.
While the company is giving developers a go-ahead to send app users outside the built-in iOS payment system as well as letting them include links, buttons and other calls to action that will allow them to avoid up to 305 ‘Apple tax’, the new policy will see Apple charge up to 27% as a commission on each purchase.
Additionally, Apple’s compliance plan will bring other obstacles for developers that may deter users from making purchases on an external site – a move that Epic Games CEO Tim Sweeney dubbed “bad-faith” compliance in a post on X.

Google, which was also forced to cut its commission percentage, also brought rules which led to resistance from the developers. Google charges somewhere between 11-26% of the in-app purchases as per the new in-app payment laws.

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