Spotify has announced that users in Europe will soon be able to purchase audiobooks and subscription plans directly through the app, thanks to the new Digital Markets Act (DMA).
This change allows the company to bypass Apple’s 30 percent fee for in-app transactions, which has been a point of contention for Spotify.
Spotify users in Europe to get new in-app purchase options
Spotify has not allowed users to pay for subscriptions using Apple’s in-app payment system since 2016, criticizing the tech giants’ commission. With the launch of its own in-app payments, Spotify users can now easily purchase audiobooks and subscriptions within the app at no extra cost.
This move is seen as an important development for Spotify, which is in a legal dispute with Apple over App Store fees. The company argues that these fees force it to increase the cost of its monthly subscriptions, and the DMA’s ban on such practices is seen as a positive step.
Under the new system, users will be charged the actual amount for subscriptions and purchases, with no additional costs to cover Apple’s commission. This means that users will not be charged $3 in addition to Spotify’s subscription prices.
In addition to implementing its own in-app payment system, Spotify can set prices within the app. The company will now be able to display the prices of its products and inform iOS users about offers and promotions from within the app.
This move is seen as a victory for developers who have been demanding that other governments enact laws similar to the DMA. The company believes this change will make it easier for customers to buy its products and hopes other markets will follow suit.
The update is expected to take effect in March, and Spotify’s US-listed shares have already risen nearly 2% following the announcement. The move is seen as a positive step for the company, which is looking for ways to offset overheads from Apple’s fees.
The introduction of the DMA brought a significant change for Spotify and its users in Europe. The ability to make in-app purchases at no extra cost is a welcome development and emphasizes the importance of competition laws in regulating the technology industry.
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