Ahead of the Digital Markets Act (DMA) regulation, Spotify is gearing up to launch its in-app payments feature for iOS users in Europe. Soon Spotify users will be able to make subscription and audiobook purchases directly within the app.
Apple has been imposing restrictions on app makers, taking a 30% cut from the revenue they generate. And Spotify has been outspoken about this for some time.
With the DMA law set to come into effect on March 7, gatekeepers like Apple will be required to open up their online services to smaller players. For Apple, this means allowing third-party developers not only to distribute iPhone apps outside the App Store, but also to directly bill their customers.
“For years, even in our own app, Apple had these rules where we couldn’t tell you about offers, how much something costs, or even where or how to buy it. We know, pretty nuts,” Spotify wrote on their website. “The DMA means that we’ll finally be able to share details about deals, promotions, and better-value payment options in the EU.”
The EU vs. Apple: The Antitrust Battle Continues
The European Union has consistently criticized Apple for undermining competition and innovation. This includes charging high commission fees, mandating the use of its in-app purchase platform, and restricting the presence of other app stores on iOS devices.
In 2017, Apple confirmed that it slowed down older iPhone models to “prolong the life” of its devices. France’s competition and fraud watchdog organization DGCCRF fined the iPhone maker 25 million euros for not disclosing this to consumers. Customers suspected that this was done to get them to upgrade to the latest model.
Within the mobile wallet sector, Apple’s iOS exhibits a clear bias by limiting access to their NFC technology for competitors such as PayPal and Venmo. This practice hampers fair competition, particularly as customers are restricted to using Apple Pay within Apple’s ecosystem, preventing them from exploring other options such as Samsung Pay or Google Pay.
To avoid hefty fines, Apple finally relented last December to open up its tap-and-go mobile payment system for its competitors. The European Commission will approach competitors for feedback before accepting Apple’s offer.
