Spotify users in Europe will soon have the option to purchase audiobooks and subscription plans directly within the music-streaming app, thanks to new competition laws for Big Tech in the region, announced by the Swedish company on Wednesday.
This strategic move by Spotify aims to circumvent Apple’s longstanding 30% fee for in-app purchases made through its App Store, which has been a contentious issue between app developers and the tech giant. The introduction of audiobooks and subscription plans within the Spotify app aligns with the new Digital Markets Act (DMA) set to be enforced by March 7, requiring major tech firms to treat their products and services similarly to their competitors.
Spotify has been entangled in a legal battle with Apple, asserting that the company’s App Store rules compelled Spotify to raise its monthly subscription prices. The DMA now provides Spotify the opportunity to share details about deals, promotions, and payment options, enhancing transparency for users in the European Union.
The DMA’s enforcement compels all major tech companies to comply with its provisions. Apple, however, reportedly plans to challenge the European Union’s decision to include the entire App Store in the bloc’s new digital antitrust list.
In response to these developments, Meta Platforms CEO Mark Zuckerberg criticized Apple’s App Store policies and fee structure, describing them as problematic and leading to conflicts of interest. Meta Platforms expressed support for more options that would introduce increased competition in the app distribution space, emphasizing the importance of providing developers with alternative ways to reach their audience.
As the digital landscape undergoes regulatory changes, the dynamics between major tech companies, app developers, and users are evolving, with a focus on fostering fair competition and transparency.
