Why Spotify is still fighting Apple in Europe

In recent months, Spotify has sent update after update to Apple, changing the interface of its music streaming service to display in-app pricing information for users in the European Union. For users, this isn’t even worth noticing. But for Spotify, each submission was yet another conflict in its years-long legal fight with Apple in the EU. And now, Spotify is the closest it’s ever come to making Apple finally collapse.

In March, the European Commission ruled against Apple in an antitrust action about App Store restrictions on music streaming services. In 2019, Spotify filed an antitrust complaint against Apple, alleging that its cut in App Store subscription fees – which could be as much as 30% – stifled innovation and harmed consumer choice. The Commission ended up agreeing with Spotify in its anti-management complaints and fined Apple 1.84 billion euros (about 2 billion dollars). He also ruled that the company’s anti-targeting rules are illegal and ordered Apple to allow music streaming services to “communicate freely with” their users “within their apps about available subscription options,” including links to external subscription options.

Shortly after the Commission’s decision, Spotify introduced an update that placed pricing information directly in the app and linked users to external subscription options outside of Apple’s payment system. Apple never responded. (Apple says which analyzes 90% of submissions in “less than 24 hours”.)

On April 5 – just one day before the European Commission could begin enforcing its decision to block Apple’s anti-steering rules – Apple created a new rights program that would allow music streaming apps to include external links to shopping. Sounds great and all, but Apple also wants a 27% reduction on these purchases.

To get around this fee, Spotify sent other version of its app for EU customers weeks later. This time, it only contained basic pricing information rather than links to the streaming app’s website. Apple rejected the app update shortly after it was submitted. He said Spotify must agree to the right and pay Apple a commission regardless of whether the app includes an external link.

So now the dispute returns to the European Commission.

“Ultimately what we want is the ability to communicate to our users about pricing and best plans,” said Harry Clarke, associate general counsel at Spotify, during a press conference on Wednesday. “We want users to have a better experience and that is why the commission reached these conclusions.”

While the Commission analyzes whether Apple’s new music streaming app policy complies with the court order, it is also in the bloc’s sights for another reason: the Digital Markets Law (DMA). Apple is considered a “gatekeeper” under the new set of laws that took effect earlier this year and govern how Big Tech operates. This has already led Apple to start allowing developers with apps in the EU to use alternative payment options and distribute their apps on alternative app stores, as long as they agree to Apple’s new commercial terms and pay its new Core Technology Fee.

The Commission opened an investigation into Apple in March due to concerns that its changes were not fully compliant with the DMA. This could subject Apple to not one – but two – enforcement actions in the EU if the Commission finds any wrongdoing, and Spotify seems confident that the EU will do the right thing in this regard. “The question for the commission is whether it will address the matter through a case noncompliance investigation or through the DMA noncompliance investigation,” Clarke said. “I would say you should do both.”