In a significant development, Spotify announced on Wednesday that starting March, European users will have the ability to purchase audiobooks and subscription plans directly within the music-streaming app. This move is a response to the region's new competition law for Big Tech, allowing Spotify to sidestep Apple's 30% fee for in-app purchases through its App Store. The ongoing dispute over these fees has been a longstanding point of contention between app developers and the tech giant.
Spotify has been engaged in a legal battle with Apple, alleging that the App Store rules forced the company to increase the prices of its monthly subscriptions. The newly enacted Digital Markets Act (DMA) in Europe, which mandates compliance from all Big Tech firms by March 7, now requires companies to treat their own products and services on equal terms with those of their competitors.
The DMA marks a significant shift for Spotify, enabling the company to share details about deals, promotions, and more competitive payment options within the European Union. The company expressed its satisfaction with the new regulations, stating in a blog post, "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. The DMA means that we'll finally be able to share details about deals, promotions, and better-value payment options in the EU."
Apple, however, plans to challenge the European Union's decision to include the entire App Store in the bloc's new digital antitrust list. In November, Bloomberg News reported that Apple intends to contest this decision. Additionally, Apple faces a mass lawsuit in London, where it seeks to dismiss a case worth around $1 billion brought by more than 1,500 app developers over App Store rules.
Meta Platforms, formerly Facebook, also weighed in on the matter, with CEO Mark Zuckerberg criticizing Apple's App Store policies and fee structure. On Wednesday, Meta expressed interest in supporting developers by stating, "We've always been interested in helping developers distribute their apps, and new options would add more competition in this space. Developers deserve more ways to easily get their apps to the people that want them."
The evolving landscape of digital markets in Europe, as shaped by the DMA, is likely to have a lasting impact on the relationships between tech giants, app developers, and consumers.
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