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Spotify in the App Store: The streaming market leader hopes for tough enforcement of the Digital Markets Act

Photo: IMAGO / Rüdiger Wölk

With the European Digital Markets Act (DMA) taking effect, Spotify wants to sell its subscriptions and audio books on the iPhone in the future in such a way that Apple doesn't make any money.

Interested parties should be directed from the Spotify app via a link to a website where they can enter their credit card information, as the music streaming market leader explained in a blog entry.

There was initially no reaction from Apple.

The iPhone maker denies that its App Store business falls under the DMA.

The DMA regulations take effect from March 7th.

On Apple's iPhones, the in-house App Store is currently the only source from which applications can be downloaded to the device.

When purchasing digital items within an app, developers must pay Apple 30 percent of the purchase price.

For subscriptions it is initially 30 and later 15 percent.

The tax cannot be avoided because the use of Apple's system for in-app payments is mandatory.

Apple's plans are not yet public

Apps like Spotify or Netflix can also sell subscriptions outside of the Apple platform on the web - and their customers can then also use them on the iPhone and iPad.

In this case, Apple does not receive any tax.

However, Spotify has long complained that Apple does not allow information about prices and places to purchase subscriptions externally in the app itself.

Since a court ruling in the USA, Apple has also had to allow app developers to direct their users to external purchasing options.

However, the company set a reduced levy of 27 or twelve percent for such cases.

Apple has not yet published plans for DMA implementation.

The company argues, among other things, that it actually operates five app stores because the platforms for different devices such as iPhones, iPads or Macs have to be considered separately.

Individually they were not covered by the DMA.

Spotify counters that Apple must first implement the regulations even if there is an objection.

The streaming market leader would view a 27 percent solution as a bypass of the DMA, said the responsible manager Olivia Regnier.

Spotify hopes that the EU Commission will enforce the DMA harshly.

The Wall Street Journal wrote on Wednesday that Apple is planning new restrictions and fees for developers in Europe.

This could make a download offer next to the App Store unattractive for them.

According to the DMA, the company must, among other things, allow apps to be loaded onto the iPhone from other download sources.

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