Spotify's latest update for its app in the European Union was blocked from the App Store this Wednesday. Apple cited non-compliance with its Music Streaming Services Entitlement, which mandates that apps like Spotify must accept specific terms before directing users to external websites for purchases.
According to Apple, Spotify attempted to include links to an external storefront for subscription purchases without agreeing to the terms of the Entitlement or undergoing the required profile review. In response, Spotify has framed the issue as a broader legal battle, invoking a European Commission ruling aimed at curbing Apple’s restrictive practices around app distribution.
"Apple has once again defied the European Commission's decision, rejecting our update for attempting to communicate with customers about our prices unless we pay Apple a new tax," a Spotify spokesperson stated on Thursday.
The so-called "new tax" refers to the conditions under the Entitlement, which requires services to pay Apple a reduced commission of 27% on transactions made through external purchase mechanisms—a slight decrease from the standard 30% fee. This rate could further reduce to 12% for certain small businesses or for auto-renewing subscriptions after the first year.
Despite these fees, Spotify claims to contribute minimally to Apple's revenues, having removed in-app subscription purchases several years ago. In 2019, only a fraction of Spotify's subscribers were reported to be paying a reduced 15% commission to Apple, reflecting long-term customers beyond their first subscription year.
This ongoing feud highlights the tensions between app developers and Apple's control over the iOS ecosystem, particularly in light of regulatory scrutiny in the EU aimed at fostering fair competition and reducing anti-competitive practices.
