For years, developers have been complaining about the Apple Tax, the 27 to 30 percent cut that Apple takes from revenue that apps generate from users who purchase or subscribe through its App Store.
On April 30, however, Gonzalez Rogers ruled that Apple violated her 2021 order by not doing enough to halt anti-competitive pricing measures. Apple listened up this time and nixed the 27 to 30 percent take.
Spotify immediately pounced by submitting an iOS app update to Apple for approval, which was granted today.
“We can now give consumers lower prices, more control, and easier access to the Spotify experience,” Spotify wrote in a press release that borders on gloating. Notice that it doesn’t say they will offer consumers lower prices, unlike Proton did in response to the same court ruling against Apple.
promises of more transparency
“After nearly a decade, this will finally allow us to freely show clear pricing information and links to purchase, fostering transparency and choice for U.S. consumers,” Spotify spokesperson Jeanne Moran said in an email to Reuters.
“While other governments around the world have taken steps against Apple’s harmful practices, this is, by far, the most consequential action to date,” wrote Spotify in its press release, “and it delivers the benefits that all consumers deserve around the world.”
Impending changes to Spotify’s iOS app means that, as Spotify says, subscribers…
- “Can finally see how much something costs in our app, including pricing details on subscriptions and information about promotions that will save money;
- “Can click a link to purchase the subscription of choice, upgrading from a Free account to one of our Premium plans;
- “Can seamlessly click the link and easily change Premium subscriptions from Individual to a Student, Duo, or Family plan;
- “Can use other payment options beyond just Apple’s payment system—we provide a wider range of options on our website; and
- “Going forward, this opens the door to other seamless buying opportunities that will directly benefit creators (think easy-to-purchase audiobooks)”
Spotify frequently directs users to a website titled Time to Play Fair, which is a website set up by Spotify specifically to pressure Apple to loosen its grip on the apps that populate its App Store. There’s a timeline that tracks the most consequential (as Spotify sees it) developments in regulators’ efforts to address, most prominently, the Apple Tax.
Spotify doesn’t particularly hide its affiliation with Time to Play Fair, although it could stand to make that link more apparent.
Now it’s time for Spotify to take its victory lap. Once the app update, already approved and just waiting to be pushed out to users, takes effect, we’ll see just how much more transparent Spotify’s pricing becomes.
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