The competitive battle between tech giant Apple and music streaming platform Spotify is entering a new chapter. After the European Commission fined Apple €1.84 billion for anti-competitive practices in the music streaming market, Spotify offered an update to the App Store. Here are all the details…
Apple and Spotify are at war with each other
With the update, Spotify started showing the prices and features of its different plans in the EU directly in the app. A link also allows users to purchase subscriptions from Spotify’s website. The move is interpreted as an effort to become independent from Apple‘s in-app payment system and eliminate the commission.
Spotify’s move is seen as a result of the European Commission’s decision to challenge Apple’s monopoly on the App Store. The Commission ordered Apple to allow streaming music developers to communicate freely with their users.
But Apple is not sitting idle. Arguing that Spotify is the “biggest beneficiary” of the App Store and has most of the market share in Europe, Apple does not believe Spotify will benefit from this update. It is also reported that Apple plans to charge additional fees to companies like Spotify under the name of “core technology fee”.
These updates could start a significant shift in the music streaming market. Spotify’s update and Apple’s response could lead to more competition and consumer choices.
Additional information:
- Apple has not yet approved Spotify’s update to the App Store.
- Purchasing a subscription on Spotify’s website may be cheaper than Apple’s in-app payment system.
- Complying with Apple’s changes may financially burden companies like Spotify.
Final thoughts
Who will win this battle between Apple and Spotify? What is the future of the music streaming market? Time will tell the answer to these questions.
Featured image credit: Barış Selman / DALL-E 3