In a move that could shake up the music streaming industry, Spotify has announced that it will begin offering in-app purchases to its users in Europe. The change comes as a result of the European Union’s Digital Markets Act (DMA), which aims to promote fair competition between technology companies.
Spotify aims for in-app purchases in Europe, pending Apple’s cooperation
From March, Spotify users in Europe will be able to buy audiobooks and subscriptions directly from the app without having to go to the App Store. This is a significant development as it will allow Spotify to avoid the 30 percent commission Apple charges on purchases made through its platform.
The move is also seen as a way for Spotify to offset the extra costs it has incurred over the years as a result of its legal battle with Apple. The company has had to raise the price of its monthly subscriptions to cover the costs associated with Apple’s App Store rules.
In a blog post, Spotify said the DMA gives it the freedom to share details of deals, promotions, and more valuable payment options in the EU. “For years, Apple had rules where we couldn’t tell you about deals, how much something cost, or even where or how to buy it,” the company said.
The DMA, which all major technology companies must comply with by 7 March, requires companies to treat their products and services like their competitors. Despite this, Apple plans to appeal the European Union’s decision to place the entire App Store on the bloc’s new digital antitrust list.
This decision raises questions about the future of the music streaming industry, with Spotify’s move paving the way for other companies to follow suit. As the industry continues to evolve, it remains to be seen how Apple and other players will respond to this latest development.
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