Spotify plans to offer subscriptions on its iOS app in Europe after DMA

2024-01-24 15:18:27

O Spotify announced today plans to offer options to purchase services and subscriptions within its app in European Union countries. The music streaming service will add options accordingly. Digital Markets Law (Digital Markets Actor DMA)which will come into force in the EU.

This new development is a direct consequence of rules established by the DMA. The law prohibits services with a dominant position (the so-called gatekeepers), like the App Store, charging a 30% commission if apps promote their own products or subscriptions, as well as requiring the use of a specific payment system.

You’re about to try a new Spotify if you live in the European Union. One in which you can see all subscription prices, promotions or transactions and even make purchases, all seamlessly in the app. Find out what this means for you. spoti.fi/3HtTOLZ

The video compares Spotify’s current interface with previews of the changes that will be introduced in the EU after the DMA comes into force. Currently, the streaming service doesn’t even offer the possibility of making subscriptions within the app, to avoid paying Apple’s commission.

Prices for subscriptions, audiobooks and other services/products will be shown, including a button directing to a page where the subscription can be completed and payment data entered outside of the App Store payment system.

These changes — if Apple does not bar them in some way — will be especially important for the streaming service, which will be able to advertise audiobooks more effectively, in addition to expanding podcast monetization options, such as exclusive content. As recalled by The Vergethese areas are important for the company to diversify revenue sources and reduce dependence on music.

Currently, Apple prevents Spotify from including a link — like the one shown — or a button that directs users to subscribe outside of the App Store system. Maçã also charges a 30% commission on the value of transactions carried out on its system, which displeases developers and companies with the streaming service.

It is worth remembering, however, that new challenges can still be faced. In the United States, Apple started to allow these links leading outside the App Store system after a court decision — but it did not stop charging the commission, only reducing it to 27%, as also in the Netherlands. In parallel to this, the company plans to review apps distributed outside its store.

Another idea revealed by Spotify is to offer other apps, which can be downloaded directly from its website, outside the App Store, a possibility provided for in the DMA. The company gave examples of these apps as fan clubs and alternative stores, in addition to Spotify for Artists and Spotify for Podcasters.

Spotify also called for other countries to pass laws similar to the DMA, in order to expand these changes. Apple will certainly react to these service plans, as well as certainly trying to find loopholes in the legislation, given the importance of the commission charged by the App Store for its revenue, and will also encounter resistance from the EU.

Let’s wait for the next chapters!