In the EU antitrust dispute with Spotify, which brought a complaint against the iPhone manufacturer more than four years ago, Apple may soon suffer a setback.
According to Bloomberg, EU regulators intend to fine Apple up to 10% of its yearly sales if it does not permit rival music services like Spotify to direct customers to alternate payment methods within their apps instead of the App Store’s in-app purchase system. According to the report, the announcement of the decision is scheduled for early 2024.
Although developers are able to notify users via email, Apple currently forbids apps from informing users about a method of payment other than the App Store’s in-app purchase system within their apps. Should and when the EU’s order comes into force, Apple would have to renounce this alleged “anti-steering” regulation. It’s still being determined if Spotify will be able to take payments through its app or if it will only be able to promote other payment options.
Spotify has been hesitant to allow customers to subscribe to its streaming music service for the standard price of $10.99 per month through its iPhone app because it would receive less due to Apple’s 15% to 30% commission on in-app purchases. Spotify claims that not being able to inform iPhone users about other payment options is anticompetitive.