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Spotify launches in-app purchases on iPhone in Europe after DMA takes effect – January 24, 2024 at 2:11 pm

Spotify launches in-app purchases on iPhone in Europe after DMA takes effect – January 24, 2024 at 2:11 pm

Spotify users in Europe will be able to purchase audiobooks and subscriptions within the music streaming app starting in March. The Swedish company said on Wednesday that this is a result of the region's new competition law for big technology companies.

The move will help the company avoid Apple's 30% fee on purchases through the App Store, which has long been a source of contention between app developers and the tech giant.

Spotify has been embroiled in a legal dispute for years. The company claims that it had to increase the prices of its monthly subscriptions to cover the costs imposed by Apple's App Store rules.

“For years, Apple had these rules where we weren't allowed to tell you what deals were available, what something cost, or even where or how you could buy it,” Spotify said in a blog post.

“The Digital Markets Act (DMA) means we will finally be able to share details about the cheapest offers, promotions and payment options in the EU.”

Under the DMA, which all major tech companies must comply with by March 7, companies are required to treat their products and services like those of their competitors.

Apple plans to appeal the European Union's decision to add the entire App Store to its new digital antitrust list, Bloomberg News reported in November.

Apple on Tuesday asked a London court to dismiss a nearly $1 billion class-action lawsuit filed on behalf of more than 1,500 app developers over its App Store rules.

Apple has also been criticized by Meta Platforms CEO Mark Zuckerberg, who has described the App Store's policies and fee structure as problematic and a source of conflicts of interest.

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“We've always been interested in helping developers distribute their apps, and the new options will bring more competition to this space,” Meta said on Wednesday.

“Developers deserve more ways to easily get their apps to the people who want them.” (Reporting by Zaheer Kashwala in Bengaluru; Editing by Arun Kuyyur)