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

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'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.

"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.”

Also read other top stories today:

AI Under Big Tech Control! Major technology companies pouring money into artificial intelligence could come to dominate the emerging technology, Aleph Alpha GmbH CEO Jonas Andrulis said. Dive in to know how that will pan out here.

Top Tech Companies Bleeding Staff! A bunch of companies in the technology sector have been laying off some of their employees recently after quickly ramping up hiring during the COVID-19 pandemic while people spent more time and money online. Now, the firing has started. Know all about it here.

AI and its dangers! As in the rest of the world, both the wonders and absurdities of AI are increasingly visible in Latin America. The difference is that the region is among the world’s most unequal when it comes to not only income but also technology. The question for both corporations and regulators is how to use the rise of AI to narrow that divide. Check out what is happening here.

One more thing! We are now on WhatsApp Channels! Follow us there so you never miss any updates from the world of technology. ‎To follow the HT Tech channel on WhatsApp, click here to join now!