Spotify To Begin In-App Purchases For Audiobooks, Subscription Plans On iPhone

Spotify's strategic move aims to avoid Apple's 30 percent fee for purchase through its App Store.

Image Credit: Reuters

New Delhi: Spotify users from March will be able to purchase audiobooks and subscription plans directly within the music-streaming app on iPhone, as a result of the region's new competition law for the Big Tech giant. This move will be applicable in Europe only.

This strategic move aims to avoid Apple's 30 percent fee for purchases through its App Store, which has long been a source of contention between app developers and the tech giant. The Swedish company Spotify has been entangled in a legal dispute for several years, alleging that it was forced to raise the price of its monthly subscriptions to cover costs tied to Apple's App Store regulations.

In a blog post, the audio streaming app Spotify mentioned that 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. Adding further, the company asserted, "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."

Now, all big tech companies must comply with the Digital Markets Act (DMA) by March 7, 2024.

According to reports, major tech giants like Meta and Spotify are preparing to offer alternative download options to users in adherence to the requirements imposed by the new regulations. Meta Platforms is exploring a system that allows users to download apps directly from Facebook ads. In contrast, Spotify is gearing up to permit users to download specific iPhone apps directly from its website.

Notably, Microsoft could consider launching a third-party app store specifically tailored for games. The upcoming period will reveal the restrictions and fees that Apple might impose.