Spotify has not been able to get Apple to approve an EU app update that added information on subscription pricing and links to the Spotify website, and it turns out that's because Spotify has not agreed to the terms of Apple's Music Streaming Services Entitlement.A recent antitrust ruling from the European Commission fined Apple nearly $2 billion and mandated that Apple "remove anti-steering provisions" for music apps in the European Economic Area (EEA).As a result, Apple updated its App Store rules with a Music Streaming Services Entitlement that allows music apps in the EEA to inform users of other ways to purchase digital music content or services and to add website links for purchasing digital music subscriptions.
That might sound like a win for apps like Spotify, but Apple requires developers who use the entitlement to pay a 27 percent fee (reduced for subscriptions older than one year and for small businesses) on all website purchases referred by Apple.So if Spotify puts a link in its app and a user clicks it and subscribes, Spotify would owe Apple a 27 percent commission (three percent less than the App Store purchase fee).Spotify does not currently pay Apple any money, and it does not want to.
Directly after the European Commission's ruling, Spotify on March 5 submitted an EU app update that had information on subscription pricing and links to its websites for customers to make purchases.This was prior to when Apple had announced its entitlement plan.Apple ignored Spotify's app update, and Spotify complained on March 14 that Apple had not "acknowledged or responded" to its App Store submission.
Spotify at the time called on the European Commission to force Apple to approve its app update.Apple kept ignoring Spotify's submission, until today, when Spotify submitted a new version of its app.Spotify said on X (formerly Twitter) that the update has no links and includes just the "bare minimum" on pricing and a mention that subscriptions can be purchased from Spotify, which it claims is acceptable under the European Commission's ruling.
Spotify left out a small detail, though.It turns out that Spotify did not request a Music Streaming Services Entitlement and did not agree to Apple's new terms for the entitlement.The App Store Review Team sent Spotify a letter (via ) that says the entitlement is required even though there is no link because Spotify's submission has a call to action to purchase a Spotify subscription on its website.
Apple says that if Spotify agrees to the terms of the Music Streaming Services Entitlement, it will approve the latest Spotify app update.Without a link to the Spotify website, Spotify would presumably not have to pay Apple a commission because there would be no way for Apple to track clicks from its app to Spotify, but there may be some other part of the entitlement that Spotify is reluctant to agree to.Apple does not plan to let Spotify include a link to the Spotify website without paying the required 27 percent fee, but adding subscription pricing information without a link does seem to be permitted per the language of Apple's letter to Spotify.
Spotify has confirmed that it does not plan to opt in to Apple's EU App Store business terms, which are separate from the Music Streaming Services Entitlement and are part of the changes that Apple implemented as required by the Digital Markets Act.Because Spotify does not want to agree to the EU App Store business terms, it is limited on the features that it can add to its app in the EU.To offer the Spotify app directly from its website in the EU, Spotify would need to agree to the terms and would have to pay a 0.50 euro Core Technology Fee for users that download the app.
Spotify does not let customers sign up for a Spotify subscription in the app as of right now, so it does not have to pay anything.Web-based distribution and linking out to the Spotify website both have associated fees, and Spotify is aiming for a solution where it does not have to pay anything.Spotify's full statement on its update, from Chief Public Affairs Officer Dustee Jenkins:
Though Spotify has a clear path to get its app update approved, the company claims that Apple is breaking European law by charging the 27 percent fee for links and it calls on the European Commission to "enforce its decision."
