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Music streaming giant Spotify, on Wednesday, said that it plans to launch an update that will enable its iOS users in Europe to make in-app purchases.
This move comes in the wake of a new law in Europe called the Digital Markets Act (DMA), set to take effect on March 7, which mandates major tech companies, including Apple, to open up their online services to facilitate access for smaller competitors.
Under Apple's existing App Store rules in most regions, companies like Spotify are prohibited from directly billing users within the app. Instead, Apple mandates app makers to utilise its App Store billing service, which imposes a commission of up to 30%. However, the DMA will compel companies like Apple to permit third-party developers to distribute iPhone apps outside the App Store and bill their customers directly.
In a blog post, Spotify expressed frustration with Apple's previous restrictions within their app, stating, "For years, even in our own app, Apple had these rules where we couldn’t tell you about offers, how much something costs, or even where or how to buy it. We know, pretty nuts. The DMA means that we’ll finally be able to share details about deals, promotions, and better-value payment options in the EU."
Spotify's introduction of an in-app payment system will allow users to conveniently purchase audiobooks while browsing titles within the application. Crucially, customers will only be charged the actual amounts for subscriptions and purchases, without incurring additional fees to cover Apple's commission. Additionally, Spotify will be able to show product prices and inform iOS users about deals and promotions directly within the app.