In a strategic move to avoid Apple’s contentious fees, Spotify is gearing up to sell audiobooks and subscriptions directly from its iPhone app within the European Union, CNBC reported. Capitalizing on new EU regulations, the music streaming giant plans to guide users from the app to a dedicated page for entering payment details, enabling them to purchase subscriptions and audiobooks, as outlined in a recent blog post.
For years, Spotify refrained from offering in-app subscription purchases due to the steep commission fees imposed by Apple. The tech giant’s regulations also prevented the Swedish audio streaming company from promoting audiobook deals to users. Developers, when selling digital items through an app, are obligated to pay 30 percent of the purchase price to Apple. In the case of subscriptions, this starts at 30 percent and later drops to 15 percent.
Despite facing criticism for these seemingly high fees, developers have little choice but to comply, as Apple’s in-app payment system is mandatory for iPhone users. Currently, Apple’s App Store is the sole platform for downloading apps onto the device. Apple also denies falling under the EU’s Digital Markets Act (DMA), effective from March 7. The DMA aims to curtail unfair practices by tech industry gatekeepers.
Notably, apps like Spotify and Netflix can sell subscriptions outside the Apple platform through the web, allowing customers to use them on iPhones and iPads without Apple taking a percentage. The Wall Street Journal reported Apple’s plans to introduce new restrictions and fees in Europe concurrently with the implementation of the EU’s DMA rules, which mandate the allowance of apps from alternative sources on iPhones. However, Spotify has long argued that Apple restricts the dissemination of information about external subscription purchases within the app.
While Apple is yet to unveil specific DMA implementation plans, the company contends that its different device platforms, such as iPhones, iPads, or Mac computers, should be considered separately, each operating as an individual app store. Following a recent U.S. court ruling, Apple has had to permit app developers to guide users to external purchase options.
With a keen interest in tech, I make it a point to keep myself updated on the latest developments in technology and gadgets. That includes smartphones or tablet devices but stretches to even AI and self-driven automobiles, the latter being my latest fad. Besides writing, I like watching videos, reading, listening to music, or experimenting with different recipes. The motion picture is another aspect that interests me a lot, and I'll likely make a film sometime in the future.
