Spotify Details How Digital Markets Act Will Improve its App for EU Users

The EU’s Digital Markets Act, which Big Tech companies will have to comply with by March 6, will have big implications for companies like Spotify, which have been complaining about Apple’s App Store practices for years. With the DMA, Spotify will finally be able to communicate directly with EU users on its iOS app and implement its own payment system that doesn’t give Apple a 30% cut on these in-app purchases.

“The DMA means that we’ll finally be able to share details about deals, promotions, and better-value payment options in the EU,” Spotify explained today. “And an easier experience for you means good things for artists, authors, and creators looking to build their audiences of listeners, concert-goers, and audiobook-loving fans. All of this can now come without the burden of a mandatory ~30% tax imposed by Apple, which is prohibited under the DMA.”

Today, Spotify previewed some of the changes that will go live in its app for European users on March 7. The company will be able to show EU users prices for Premium subscriptions in its iOS app, tell them about promotions, and allow them to make purchases with their credit card. As for audiobooks, EU users will also be able to see prices when browsing Spotify’s audiobook store and purchase content without using Apple’s in-app payment system.

“Thanks to the DMA we’re looking forward to a future of superfan clubs, alternative app stores, and giving creators the ability to safely download Spotify for Artists or Spotify for Podcasters directly from our site—and that’s just the start,” Spotify said today.

Apple has yet to detail all the changes it’s going to make to iOS and its App Store to make them compliant with the DMA. In the US, Apple recently updated its App Store policies, and the company now allows developers to link to other payment methods. However, Apple will still take a 27% cut on these transactions.

In practice, US developers will need to provide transaction records to Apple every month, and those who fail to pay Apple’s commission on time may see their app removed from the App Store. In other words, this system is still far more restrictive than what Spotify and other companies will be able to do in Europe thanks to the DMA.

“If you live outside certain markets, you will continue to encounter frustrating roadblocks because of Apple’s ridiculous rules. That’s why developers everywhere are continuing to ask other governments to pass their own laws like the DMA,” Spotify said today.