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Spotify Updates iPhone App With Out-of-App Payment Options in U.S.

As planned, Spotify has updated its iPhone app in the U.S. with out-of-app pricing and subscription options for its Premium plans. The latest version of the app is now available in the App Store, and the added pricing information is rolling out.

Spotify Premiumer Feature
Spotify users in the U.S. can now view pricing information for its Individual, Duo, Family, and Student plans directly in the iPhone app, and there are buttons that lead to Spotify's website, where users can complete the payment process.

For many years, Spotify has not allowed users to subscribe to Premium plans directly in its iPhone app, as the company does not want to pay Apple's 30% commission on in-app purchases. That remains the case as of today, but Spotify is now permitted to show buttons and links pertaining to out-of-app payment options, without any limitations.

Spotify shared the following statement today:

In a victory for consumers, artists, creators, and authors, Apple has approved Spotify's U.S. app update. 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. We can now give consumers lower prices, more control, and easier access to the Spotify experience. There is more work to do, but today represents a significant milestone for developers and entrepreneurs everywhere who want to build and compete on a more level playing field. It's the opening act of a new era, and we could not be more ready for the show.

This monumental change comes after a U.S. judge ordered Apple to immediately allow apps to show this sort of information, as part of a lawsuit filed by Fortnite maker Epic Games. Apple is also no longer permitted to collect a 27% commission on those out-of-app purchases that are initiated through the App Store. Apple has complied with the order, but the company said it disagrees with the decision and plans to appeal.

The judge enforced these requirements after finding Apple violated a 2021 injunction by imposing too many barriers on out-of-app payment options.

Many other popular iPhone apps will likely be updated with out-of-app subscription buttons and information in the U.S. over the coming days.

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Top Rated Comments

sw1tcher Avatar
12 months ago

I wonder how much it costs Apple to service the millions of copies of their app from the app store?

Perhaps they should offer Epic and Spotify etc to use their own CDN for distribution...
Probably around the same amount it costs Apple to service the millions of copies of the Starbucks, Amazon, Walmart, Bank of America, et al apps since Apple gets no cut from those apps.

Spotify users had to subscribe through the Spotify web site before this. Apple got nothing then and Apple will continue to get nothing now. So what has this changed?
Score: 26 Votes (Like | Disagree)
WarmWinterHat Avatar
12 months ago

I wonder how much it costs Apple to service the millions of copies of their app from the app store?

Perhaps they should offer Epic and Spotify etc to use their own CDN for distribution...
Little to nothing. Bulk bandwidth on Apple's level is cheap.
Score: 19 Votes (Like | Disagree)
cjsuk Avatar
12 months ago
I wonder how much it costs Apple to service the millions of copies of their app from the app store?

Perhaps they should offer Epic and Spotify etc to use their own CDN for distribution...
Score: 19 Votes (Like | Disagree)
12 months ago
Apple should pull out of U.S.
Score: 16 Votes (Like | Disagree)
thejadedmonkey Avatar
12 months ago

I guess Apple could allow Spotify et al to host their own app if they’re worried about their costs, right?
As an app developer, I'd gladly host my own app if it meant not having to pay the developer fee and my users could sideload my app.

I give my app away for free on Windows, because I don't have BS app store fees there.
Score: 14 Votes (Like | Disagree)
turbineseaplane Avatar
12 months ago
You have to wonder how many companies were watching this situation and waiting and ready to pounce.

The weeks ahead should be interesting to see who else jumps on board
Score: 14 Votes (Like | Disagree)
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