Spotify has warned that European users will be unable to enjoy the latest version of its app unless the EU’s Digital Markets Act shows some teeth in dealing with Apple.
Apple recently changed its App Store rules in an effort to avoid massive fines from the European Commission for violating its rules on fair competition in the digital realm.
However, Spotify claims these changes prevent it from sharing key pricing information with users — unlike in the U.S., where a May order by a federal judge allowed the music streaming giant to launch an app version that freely communicates pricing and promotional information. The feature is vital for selling products like audiobooks.
The product has been “enthusiastically embraced” by users stateside, Spotify’s global director of competition policy, Avery Gardiner, said at a Brussels event this week.
Gardiner explained that Spotify cannot directly tell its European users how to buy goods like Audiobooks under the current conditions of its contract with Apple. On the other hand, pursuing an alternative contract would not be economically viable, she added.
“If you can’t tell people how much stuff costs or where to buy it, they don’t buy very much of it,” Gardiner observed, contrasting the situation in Europe with that in the U.S.
“The U.S. government has taken decisive action,” she said. “Unfortunately, in Europe, the same cannot be said — the Digital Markets Act has yet to deliver the same results for consumers in Europe.”
The Commission has been scrutinizing Apple’s proposal to reform its app store practices, which came as a direct response to the DMA. If the Commission finds the changes insufficient, Apple could face substantial daily fines in addition to the €500 million penalty it received in April.
Gardiner says Spotify is keen to bring the new app version to Europe.
Spotify’s warning comes as Apple said that due to the DMA, it was holding off on rolling out a feature to European users that would allow live translation on their AirPods.
A Commission spokesperson said the regulation currently permits developers to inform users of better prices, and that the EU executive is seeking feedback from interested third parties regarding Apple’s proposed compliance solution.
A spokesperson for Apple said that the current version of the Spotify app in the EU already communicates offers, including pricing information. “Fundamentally, their complaint is about trying to get limited access to all of Apple’s tools without paying for the value Apple provides,” they said.
This story has been updated.
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