Spotify has announced plans to liberate its European Union (EU) users from Apple's 30% in-app purchase fee. This move comes as a response to the upcoming Digital Markets Act (DMA), a law set to disrupt Apple's dominance in the app market (via PhoneArena).
Spotify, a vocal critic of Apple's stringent policies, revealed on Wednesday that it will roll out an update to its iPhone app in Europe, allowing users to make in-app purchases directly from the platform.
The DMA compels gatekeeper entities like Apple to open up their online services, providing smaller competitors access and enabling direct billing.
Spotify plans to bypass Apple's 30% in-app purchase fee in the EU by leveraging the upcoming Digital Markets Act, aiming for transparency and flexibility for users.
Spotify Offer Workaround Apple's 30% Fee
The DMA's potential impact on Apple's long-standing 30% fee monopoly is what Spotify is leveraging. The streaming giant aims to break free from Apple's rules that restricted sharing details about deals, promotions, and payment options.
"We'll soon be able to give you information in the Spotify app about prices for things like Premium subscriptions and audiobooks," the company said in a statement.
Starting March 7, EU users can enjoy a more transparent and flexible experience, with Spotify planning to communicate directly in the app about subscription offerings, upgrades, and pricing information.
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The move is expected to significantly boost Spotify's margins, allowing the company to pass on the benefits to both users and creators. Apple, so far, has not reacted to the DMA, but compliance seems inevitable if it wants to maintain its operations in the EU space.
In most regions, Apple's App Store rules mandate companies to use Apple's billing service, which takes a substantial cut of in-app purchases. The DMA's intervention challenges this norm, and Spotify is leading the charge, declaring its intention to navigate around Apple's fee structure.
While Europe accounts for approximately 7% of the App Store spend, Spotify's move signifies a broader trend where developers are pushing for more control and a fairer playing field.
"It should be this easy for every single Spotify customer everywhere. But if you live outside certain markets, you will continue to encounter frustrating roadblocks because of Apple's ridiculous rules," the company said.
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