Spotify has expressed concerns that European users might miss out on the latest features of its app unless the European Union’s Digital Markets Act (DMA) effectively addresses issues with Apple. The music streaming service claims that recent alterations in Apple’s App Store policies hinder its ability to share essential pricing details with users in Europe.
Impact of Apple’s App Store Changes
These modifications by Apple were allegedly introduced to avoid significant fines from the European Commission for breaching competition regulations in the digital marketplace. However, Spotify argues that unlike in the United States—where a federal judge’s ruling in May allowed the company to launch an app version that can freely communicate pricing and promotional information—European users are left at a disadvantage. This information is crucial for the sale of products, including audiobooks, which have been well-received by users in the U.S.
Call for Regulatory Action
Avery Gardiner, Spotify’s global director of competition policy, highlighted these issues during an event in Brussels this week. She noted that current contractual obligations with Apple prevent Spotify from informing European users about how to purchase items such as audiobooks. She added that seeking an alternative agreement would not be financially feasible for the company.
“If you can’t tell people how much stuff costs or where to buy it, they don’t buy very much of it,” Gardiner stated, contrasting the European situation with that in the U.S.
Gardiner further remarked, “The U.S. government has taken decisive action. Unfortunately, in Europe, the same cannot be said — the Digital Markets Act has yet to deliver the same results for consumers in Europe.”
The European Commission is currently reviewing Apple’s proposal for reforming its App Store practices, which was initiated in response to the DMA. Should the Commission find Apple’s adjustments inadequate, the tech giant could incur significant daily fines in addition to the €500 million penalty already imposed in April.
Spotify is eager to introduce the updated app version to European markets. This appeal for urgent regulatory intervention comes as Apple announced that it would delay the rollout of a live translation feature for European users due to the DMA.
A spokesperson for the Commission indicated that existing regulations allow developers to inform users about more competitive pricing options. They also noted that feedback from interested third parties regarding Apple’s compliance proposal is currently being sought.
In response to Spotify’s concerns, an Apple representative claimed that the existing version of the Spotify app in the EU already provides users with information about offers, including pricing. “Fundamentally, their complaint is about trying to get limited access to all of Apple’s tools without paying for the value Apple provides,” they asserted.
This article has been updated to reflect the latest developments.