Conflict Over Compliance: Apple Rejects Spotify’s EU Pricing Update

Apple Inc. (NASDAQ: AAPL) has declined the latest iOS app update from Spotify Technology SA (NYSE: SPOT), which was designed to include pricing information for users in the European Union. Spotify disclosed on Thursday that Apple did not accept the app update, aimed at adhering to the European Commission’s directives.

The update Spotify proposed contained crucial pricing and website information, as required by the European Commission’s decision concerning disputes in the music streaming industry. Nevertheless, Apple, based in Cupertino, California, outright refused the update in a decision communicated to the Swedish audio streaming giant.

Expressing displeasure with Apple’s decision, a Spotify spokesperson stated, “Apple is once again questioning the European Commission’s decision by rejecting our update, which attempts to communicate pricing to our customers until we pay Apple a new tax. Ignoring the needs of consumers and developers amounts to disregarding the law.”

In March, the European Commission imposed a fine of €1.84 billion ($1.97 billion) on Apple for anti-competitive practices that obstructed competitors in the music streaming market, following a complaint lodged by Spotify in 2019.

Earlier in April, Apple announced an initiative to align with EU requirements, enabling music streaming apps to inform users in the European Economic Area of alternative methods for purchasing digital services.

Despite Apple’s initiative, which allows services like Spotify to include a link to their websites for alternative payment options outside the App Store, Spotify’s most recent app version lacked this in-app link.

As of the publication date, neither Apple nor the European Commission has made any remarks on the issue. The current exchange rate is 1 USD to 0.9328 Euro.

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