The European Digital Markets Act (DMA) comes into force on March 7th and will have a significant impact on Spotify’s business model in the region: local users are able to Buy a premium subscription, change data plans, and pay for purchases through the iOS app without paying Apple fees.
The streaming music service stopped accepting subscription payments through its iOS app back in 2016 and relentlessly criticized Apple for charging app developers a 30% commission. Last year, Spotify stopped accepting payments through Apple’s system altogether – previously, streaming was eligible for an extension if it was issued before 2016.
By introducing payment acceptance through its own system, the platform will allow users to purchase audiobooks for free through the iOS application. Customers are charged only for digital goods without overpaying Apple’s commission: previously the subscription to the service here was renewed for $ 3 more, but the DMA prohibits this practice. Spotify will also be able to specify prices explicitly for iOS users – previously, instead of the price tag, a message was displayed that products could not be purchased in the application. Finally, the platform will be able to inform users about offers and promotions directly in the application.
“It should be just as easy for every Spotify user around the world. However, if you live outside of certain markets, you will continue to encounter frustrating obstacles due to Apple’s ridiculous rules. That’s why developers around the world continue to call on their authorities to pass laws like the DMA.”says Spotify.