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Spotify, along with Google, Apple, Meta and other tech giants, is preparing to make significant changes to key services in order to comply with the new EU regulations (it’s about the Digital Markets Act), or DMA (Digital Market Act), which will start on March 7. A big part of these changes is the launch of the largest music streaming service with its own payment system inside the iOS app.
With the entry into force of the high-profile DMA rules, which, among other things, prohibit hidden fees, Spotify will offer EU users (Ukraine has a good chance of becoming a full member of the European Union by 2030) the opportunity to purchase a premium subscription or switch from an individual plan to a Duo or Family plan directly in application – bypassing the App Store.
As for Spotify, the streamer has not allowed users to pay for subscriptions through Apple’s internal payment system since 2016 and has long criticized the 30% payment fee the iPhone maker charges app developers. Last year, Spotify completely abandoned the use of Apple’s payment system – previously the company allowed iOS users who signed up before 2016 to continue paying through Apple’s internal payment system.
Spotify separately notes that with the introduction of support for internal payments, users will also be able to purchase audiobooks from the library directly in the same application without the need to go to external resources. Streaming promises “fair prices for subscriptions and purchases without additional Apple (+30%) commission”. Spotify will also be able to show subscription prices, as well as inform iOS users about offers and promotions directly in the application – this is currently prohibited by the rules of the App Store, so streaming is limited to a note where you can see the prices and informs that there is no possibility to pay for the subscription in the application.
Finally, it is worth mentioning the catchphrase about “free cheese”. The question is how much lower Spotify’s fees will be, and whether consumers will actually get lower prices. These changes apply only to the EU, while the law is different in the US and other countries – and Apple is actively protecting its business model and its money. It’s part of a larger story of Spotify, Epic and others protesting the App Store’s rules – read more about it here.
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