Apple’s app store might have to relax their current restrictions. They currently prevent platforms from allowing in-app purchases without Apple taking a large cut. However, luckily for Spotify, this might change.
In a set of mock-ups, Spotify unveils its vision for a revamped app experience. It could redefine how users interact with the platform. The current roadblock? Apple’s 30% fee on in-app purchases for digital goods and services. This has led Spotify to envision a dream scenario under the upcoming Digital Markets Act (DMA) in Europe.
Where anticompetitive practices are curbed, opening new possibilities for app functionality. The DMA, set to take effect in the coming months, has tech giants like Apple in its crosshairs. Aiming to dismantle practices deemed anticompetitive. One key provision prevents gatekeeper services, including Apple’s App Store.
From charging fees for apps to promote their own products or subscriptions. This paves the way for Spotify’s ambitious plan to introduce full in-app payment functionality. Making upgrades and purchases as seamless as a tap. Spotify’s proactive stance against Apple’s App Store practices comes to the forefront as it shares its vision for an enhanced user experience.
Will Apple have to back down?
Set to launch in Europe on March 7th. However, the extent to which this dream scenario materialises depends on Apple’s compliance with the DMA. The crucial question remains: will Apple have to allow developers the freedom to offer their in-app purchases? The potential benefits of freely allowed in-app purchases are substantial.
Particularly for Spotify’s premium subscription service. With a simpler upgrade process, even free users may find it more enticing to transition to the premium tier. Gustav Gyllenhammar, Spotify’s Vice President of Markets and Subscriber Growth, sees this as a game-changer not only for premium subscriptions but also for Spotify’s audiobook and podcasting verticals.
The current challenges users face in making purchases within these domains could be significantly eased, unlocking new possibilities for content consumption. As the DMA enforcement date approaches, the spotlight is on Apple’s response. While the mock-ups showcase Spotify’s aspirations, the real transformation will hinge on how Apple adapts.
In other regions where regulators have mandated exceptions, Apple has sought to minimise their impact. The unfolding dynamics between Spotify and Apple hold the potential to reshape the landscape of in-app transactions and user experiences, leaving music enthusiasts and tech aficionados eagerly anticipating the outcome.
