Spotify, the audio streaming company, said Apple has rejected new version of its iOS app with in-app pricing information for users in the European Union.
The Sweden-based digital music company submitted a new version of its mobile app to Apple with basic pricing and website information, meeting the minimum requirement under the European Commission’s ruling in its music streaming case, Reuters news report said.
Spotify, which has 615 million monthly active users and 239 million paid subscribers, said Apple rejected its update in a response directly sent to the company.
“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. Their disregard for consumers and developers is matched only by their disdain for the law,” a spokesperson for Spotify said in a statement.
Apple said it will approve the new version of the app after Spotify accepts the terms of the Music Streaming Services Entitlement in the European Economic Area (EEA), and resubmit it for review.
“This entitlement is required even if your app does not include an external link,” Apple said in a response to Spotify about the app update.
Under Apple’s proposal, Spotify and other streaming services can include links to their websites to inform users of payment options outside its App Store and the company would charge a 27 percent commission on transactions made through a link.
Spotify did not include the in-app link in the update submitted to Apple. Spotify generated revenue of €3.6 billion and operating income of €168 million during January-March 2024. Spotify said it does not want to be a part of Apple’s entitlement as it is a new set of anti-steering restrictions and includes the 27 percent commission on digital purchases made through links.
“We are currently assessing whether Apple has fully complied with the decision,” a spokesperson for the European Commission said. The Commission will assess any changes implemented by Apple to its App Store business terms under the Digital Markets Act.
In March, the European Union fined Apple with 1.84 billion euros ($1.97 billion) for thwarting competition from digital music streaming rivals via restrictions on its App Store.