Spotify’s Ongoing Battle with Apple in Europe: The Reasons Behind It

Spotify’s Ongoing Battle with Apple in the EU: A Closer Look

The App Store Dispute

Spotify, the popular music streaming platform, has been engaged in a prolonged legal battle with Apple in the European Union. The crux of the issue lies in the App Store’s subscription fee structure, which can take up to 30% of the revenue generated by apps. Spotify argues that this practice stifles innovation and limits consumer choice, a sentiment echoed by the European Commission in its ruling against Apple in March.

Following the Commission’s decision, Apple was ordered to allow apps like Spotify to include pricing information within the app and provide links to external subscription options, bypassing Apple’s payment system. However, when Spotify submitted an update to comply with these requirements, Apple swiftly rejected it, insisting that Spotify must still pay a commission to Apple, regardless of the presence of external links.

The Digital Markets Act (DMA) and Its Implications

As the European Commission investigates whether Apple’s revised music streaming app policy aligns with its court order, the tech giant faces another challenge in the form of the Digital Markets Act (DMA). This new set of laws, which came into effect earlier this year, designates Apple as a “gatekeeper” and regulates the operations of Big Tech companies in the EU.

Under the DMA, Apple has already begun allowing developers with apps in the EU to utilize alternative payment options and distribute their apps on other app stores, provided they agree to Apple’s updated business terms and pay the newly introduced Core Technology Fee. However, the European Commission has launched an investigation into Apple’s compliance with the DMA, raising concerns that the company’s changes may not fully adhere to the legislation.

Spotify’s Stance and the Road Ahead

Harry Clarke, Spotify’s associate general counsel, emphasized the company’s goal during a recent press briefing:

Ultimately, what we want is the ability to communicate to our users about prices, better plans. We want users to have a better experience, and that’s why the commission reached these conclusions.

As the European Commission delves into Apple’s compliance with both the court order and the DMA, Spotify remains optimistic that the EU will take appropriate action. Clarke suggests that the Commission should address the issue through both a non-compliance investigation of the case and a DMA non-compliance investigation, potentially subjecting Apple to two separate enforcement actions if any wrongdoing is discovered.

The ongoing dispute between Spotify and Apple in the EU serves as a prime example of the challenges faced by tech companies in an increasingly regulated landscape. As the European Commission continues its investigations, the outcome of this battle could have far-reaching implications for the future of app distribution and the relationship between developers and platform owners in the EU and beyond.