Spotify already has an app ready to test Apple’s new rules

Source: https://www.theverge.com/news/659891/spotify-ios-app-update-apple-payment-rules

Summary

Spotify has submitted an updated iOS app to Apple, seeking to bypass Apple's in-app purchase system and its 30% fee, following a court ruling that allows developers to communicate alternative payment options. This could lead to cheaper subscriptions for US Spotify users. Apple could approve, conditionally approve, or reject the app, potentially sparking further legal battles. Spotify's move, also driven by the EU's Digital Markets Act, is being watched by other developers and could reshape the App Store ecosystem, raising security and user experience concerns. The outcome will influence app store revenue models and Apple's control.

Full News Report

Here's the article: **Spotify Ready to Test Apple's New Rules with Updated iOS App, Circumventing App Store Fees** In a swift response to the recent Epic Games v. Apple ruling, Spotify has announced it has submitted an update to its iOS app, paving the way for US users to potentially bypass Apple's in-app purchase system and its associated fees. The move, revealed in a blog post yesterday, signals Spotify's eagerness to leverage the changes mandated by the court and offer alternative payment options to its subscribers. This development arrives as a significant challenge to Apple's longstanding control over its App Store ecosystem and opens a new chapter in the ongoing battle over app store commissions. **The Spotify Announcement: A Direct Response to the Epic Games Ruling** Spotify's decision to submit the updated app comes hot on the heels of a judge's ruling in the long-running legal battle between Epic Games, the maker of Fortnite, and Apple. While the court largely sided with Apple regarding antitrust claims, it did rule that Apple could no longer prevent app developers from communicating with users about alternative payment options outside the App Store. This opened a door for developers like Spotify to explore ways to bypass Apple's 30% commission on in-app purchases, a fee that has long been a point of contention. Spotify's blog post stated that the update, now submitted for Apple's approval, would allow US customers to utilize payment options that aren't Apple's. While the specific details of how this will be implemented remain under wraps pending Apple's review, the implication is clear: Spotify is preparing to direct users to alternative websites or payment gateways to subscribe to their premium service, potentially cutting Apple out of the revenue stream. **H2: Deep Dive: What Does This Mean for Spotify Users?** For Spotify users in the United States, this could translate to significant savings on their monthly subscriptions. By offering alternative payment options, Spotify could potentially pass on some of the savings from bypassing Apple's 30% commission. This could manifest as lower subscription prices, special discounts, or other incentives to encourage users to subscribe directly through Spotify's platform. However, the implementation of these alternative payment options is likely to be nuanced. Apple still retains significant control over the iOS platform and could impose restrictions or guidelines that impact how Spotify can communicate with users about these alternatives. **H3: Potential Scenarios and Challenges for Spotify's iOS App Update** Several scenarios could play out following Apple's review of Spotify's updated app: * **Full Approval:** Apple could approve the app with minimal changes, allowing Spotify to freely communicate alternative payment options to its users. This would be a significant victory for Spotify and could set a precedent for other app developers. * **Conditional Approval:** Apple could approve the app with certain conditions, such as limitations on how Spotify can promote alternative payment options. This could involve restrictions on in-app messaging or limitations on linking to external websites. * **Rejection:** Apple could reject the app update altogether, citing violations of its App Store guidelines. This would likely trigger a legal challenge from Spotify, further escalating the conflict between the two companies. The challenge for Spotify lies in finding a balance between complying with Apple's guidelines and effectively communicating the availability of alternative payment options to its user base. Clever marketing strategies and innovative approaches to user engagement will be crucial in navigating this complex landscape. It must consider how the current branding of the **app** will adapt to **apple's** rules. **H2: The Broader Context: Spotify vs. Apple – A History of Tension** Spotify and Apple have a long and contentious history, primarily stemming from Apple's dual role as both a competitor and a gatekeeper to the iOS ecosystem. Apple Music, a direct competitor to Spotify, enjoys certain advantages by virtue of its integration with iOS, including seamless access to Apple's hardware and software features. Spotify has repeatedly accused Apple of anticompetitive practices, including unfairly promoting Apple Music over rival streaming services and imposing restrictions on Spotify's ability to innovate and compete on a level playing field. These tensions culminated in a formal complaint filed by Spotify with the European Commission in 2019, alleging that Apple's App Store rules violate EU competition law. The EU investigation is still ongoing. **H3: The European Front: A Different Landscape** While Spotify's current move focuses on the US market, the company is also actively pursuing regulatory changes in Europe. The Digital Markets Act (DMA), recently passed by the European Union, aims to curb the power of tech giants like Apple and Google by imposing stricter rules on their app stores and other digital platforms. The DMA would likely force Apple to allow alternative app stores on iOS, further loosening its grip on the ecosystem and potentially allowing Spotify to distribute its app directly to users without paying Apple's commission. This would represent a major shift in the competitive landscape and could significantly benefit Spotify's market share in Europe. The DMA legislation is significantly impacting how companies are approaching creating and testing **apps** in the EU. **H2: Impact on Other App Developers and the Future of the App Store** Spotify's move is being closely watched by other app developers who are also seeking ways to bypass Apple's App Store fees. If Spotify is successful in implementing alternative payment options, it could pave the way for other developers to follow suit, potentially eroding Apple's revenue from the App Store. This could lead to a fundamental reshaping of the App Store ecosystem, with developers gaining greater control over their revenue streams and consumers benefiting from lower prices. However, it could also create challenges for Apple in maintaining the security and quality of the App Store, as it would have less control over the payment process. **H3: Security and User Experience Concerns** As alternative payment options emerge, concerns about security and user experience are likely to arise. Apple has long argued that its in-app purchase system provides a secure and seamless payment experience for users, protecting them from fraud and malware. By bypassing this system, developers would need to ensure that their own payment methods are equally secure and user-friendly. Apple could also argue that alternative payment options create a fragmented user experience, making it more difficult for users to manage their subscriptions and track their spending. These concerns will need to be addressed to ensure that the transition to a more open app store ecosystem is smooth and beneficial for both developers and consumers. Spotify's **ready** to **test** the system is going to require a significant amount of monitoring to ensure security. **H2: Looking Ahead: The Next Chapter in the App Store Saga** Spotify's submission of its updated iOS app marks a pivotal moment in the ongoing battle over app store commissions. The outcome of Apple's review will have significant implications for Spotify, other app developers, and the future of the App Store. Whether Apple approves the app, imposes restrictions, or rejects it outright, the dispute is likely to continue in the courts and regulatory agencies. The pressure on Apple to loosen its grip on the App Store is growing, and the company will need to adapt to the changing landscape to maintain its position in the mobile ecosystem. The changes will affect everything from the **app's** onboarding flow to long-term business strategy, and **spotify** is positioning itself to be at the forefront of this change. How **apple** responds remains to be seen. The world is watching closely to see how these two tech giants reconcile their different positions.