🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

Spotify to start in-app purchases on iPhone in Europe after DMA takes effect

Published 25/01/2024, 12:15 am
© Reuters. Small figurines are seen in front of displayed Spotify logo in this illustration taken February 11, 2022. REUTERS/Dado Ruvic/Ilustration
AAPL
-

(Reuters) -Spotify users in Europe can start to buy audiobooks and subscription plans from within the music-streaming app from March as a result of the region's new competition law for Big Tech, the Swedish company said on Wednesday.

The move will help the company avoid Apple (NASDAQ:AAPL)'s 30% fee for purchases through its App Store, which has long been a source of contention between app developers and the tech giant.

Spotify has for years been in embroiled in a legal battle, alleging that it was forced to raise the price of its monthly subscriptions to cover costs tied to Apple's App Store rules.

U.S.-listed shares of the Stockholm-based company rose around 2%.

"For years Apple had these rules where we couldn't tell you about offers, how much something costs, or even where or how to buy it," Spotify said in a blogpost.

"The DMA (Digital Markets Act) means that we'll finally be able to share details about deals, promotions, and better-value payment options in the EU."

Under the DMA, which all Big Tech firms must comply with by March 7, companies are obligated to treat their own products and services like they do rivals'.

Apple plans to challenge the European Union's decision to put all of App Store into the bloc's new digital antitrust list, Bloomberg News had reported in November.

On Tuesday, Apple asked a London tribunal to throw out a mass lawsuit worth around $1 billion brought on behalf of more than 1,500 app developers over its App Store rules.

Apple had also drawn criticism from Meta Platforms CEO Mark Zuckerberg who called App Store policies and fee structure as problematic and causing a conflict of interest.

© Reuters. Small figurines are seen in front of displayed Spotify logo in this illustration taken February 11, 2022. REUTERS/Dado Ruvic/Ilustration

"We've always been interested in helping developers distribute their apps, and new options would add more competition in this space," Meta said on Wednesday.

"Developers deserve more ways to easily get their apps to the people that want them."  

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.