Spotify wants to sell subscriptions and audiobooks past Apple in the EU

Interested users will be directed from the app via a link to a page where they can enter their credit card information, as the music streaming market leader explained in a blog post on Wednesday. There was initially no reaction from Apple. The iPhone company denies that its app store business falls under the Digital Markets Act DMA. The DMA regulations take effect from March 7.

On Apple iPhones, the company's own App Store is currently the only source from which applications can be downloaded to the device. When purchasing digital items in an app, developers must pay 30 percent of the purchase price to Apple.

For subscriptions, it is initially 30 percent and later 15 percent. The tax cannot be avoided because the use of Apple's system for in-app payments is mandatory.

Apps such as Spotify or Netflix can also sell subscriptions outside of the Apple platform on the web - and their customers can then also use them on the iPhone and iPad. Apple does not receive a levy in this case.

However, Spotify has long complained that Apple does not allow information about prices and locations for external subscription purchases to be provided in the app. Spotify has not offered the option of buying a subscription in the app at a higher price due to the Apple levy for several years.

Apple must allow external purchase options

Following a recent court ruling, Apple must now also allow app developers in the USA to direct their users to external purchasing options. However, the Group set a reduced levy of 27% and 12% respectively for such cases.

Apple has not yet published any plans for DMA implementation. The company argues, among other things, that it actually operates five app stores, as the platforms for different devices such as iPhones, iPads or Mac computers must be considered separately. They would not fall under the DMA individually.

The Wall Street Journal wrote on Wednesday that Apple is planning new restrictions and fees for Europe. According to the DMA, the company must allow apps from other download sources to be loaded onto the iPhone, among other things.

Spotify counters that Apple would have to implement the regulations first, even in the event of an objection. The streaming market leader would consider a 27 percent solution to be a circumvention of the DMA, said the responsible manager Olivia Regnier. Spotify is hoping that the EU Commission will enforce the DMA rigorously. (SDA)