Spotify can now display prices in the iPhone app, but only in the EU

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Key points

  • Apple has rolled back an aspect of its App Store rules, meaning Spotify can display prices in the European Union.
  • This change was made after the European Union fined Apple for violating antitrust laws.
  • iPhone users in the US are still unable to see Spotify pricing within the app due to regional restrictions.



It doesn’t seem like it should be big news that app developers can list their service prices within their own apps. But that’s the exact situation we find ourselves in as Apple continues its battle to assert complete control over what happens within the App Store.


Spotify can now display its pricing to customers

Spotify can finally show pricing information to iPhone users within its own app, after Apple backed down from part of its war against app developers. Unfortunately, this only applies to the EU, and doesn’t affect other markets (for now).

This comes thanks to Spotify's participation in Apple's “Music Streaming Services Entitlement” program, which allows music streaming apps on the Apple App Store to display pricing information.

In an updated blog post, Spotify revealed the news, citing “progress” in its battle with Apple over what it can and can't do with its iOS app.


Spotify displays pricing information within the iPhone app
Spotify

While Spotify has chosen to take advantage of this right, it has chosen not to tie into third-party payment options. This is due to Apple’s requirement to take a 20% cut of payments made outside the App Store in its updated developer agreement. Spotify has condemned this tax as “illegal and exploitative.”

So, in the EU at least, Spotify will now display the price of its subscription plans and notify users of the payment option on the Spotify website. However, there won’t be a link for users to click on, as that would trigger Apple to claim its share of the revenue.


Why did Apple give up some control over iPhone apps?

Apple publicly backtracked on this particular point after the European Commission found that the company had violated EU antitrust laws by “abusing its dominant position.” As a result, the European Commission fined Apple €1.8 billion ($2 billion), which is a huge blow even for a company as wealthy as Apple.

So, months after the fine was imposed, Apple is taking steps to settle things a bit in order to prevent further decisions against it. And thus more fines. But this is unlikely to be the end of the battle.

Will this decision affect other markets such as the US market?

Unfortunately, Apple’s “streaming rights” only apply to the European Economic Area. So, for now at least, Spotify still can’t offer its in-app subscription prices to iPhone users in the US. It would take US regulators to bring the same basic right to that market. That’s unlikely to happen anytime soon, despite the US boasting strong antitrust laws.

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