Music streaming
In the future, music subscriptions can be taken out outside the App Store
Following a decision by the EU Commission, Apple is changing the procedure for taking out subscriptions outside of the App Store in Europe. photo
© Julian Stratenschulte/dpa
A complaint from Spotify led to a €1.84 billion fine against Apple. The group reacts promptly with changes to subscriptions – but is still concerned about its own advantage.
In the future, music streaming providers will be allowed to allow their users in the European Economic Area to take out a subscription outside of the App Store Run Apple. However, the iPhone company wants to collect a fee of up to 27 percent of the purchase price. The US company introduced the new option around a month after a billion-dollar competition fine from the EU Commission, which was triggered by a complaint from rival Spotify.
Apple can demand taxes despite the ruling
At the same time, Apple emphasized at the weekend that the Commission’s decision does not restrict the company from charging fees for the use of the company’s technologies and services. When subscribing to the in-house App Store, Apple charges a fee of 30 percent in the first year. After that – and for smaller companies from the start – the levy is 15 percent.
The new fee for links from music apps to external subscriptions is based on this: the fee drops to 12 percent after one year. Apple only charges the fees if the links are used by users to take out a subscription within a week.
Spotify had expressed dissatisfaction with the fact that the service was not allowed to indicate to users in its app where the subscription could be taken out outside of Apple’s download platform on the web. In this case, Apple does not receive any tax – but the subscription offer can be used in the app after registration. Just like Netflix, for example, Spotify stopped offering a more expensive option for subscribing within the app years ago.
1.8 billion euros in fines as a deterrent
At the beginning of March, the EU Commission imposed a fine of 1.84 billion euros on Apple and asked the company to create options for redirecting users to external subscriptions. The year-long investigation focused on competition in music streaming apps – and the decision only applies to this market. Of the fine, only 40 million euros related to actual economic disadvantages for Spotify; the remaining 1.8 billion euros are intended, according to the Commission, “as a deterrent”. Apple announced that it would appeal, but still has to implement the commission’s guidelines.
Apple on rules for music streaming apps