Apple has approved Spotify’s updated iOS app for the U.S., which now lets users pay for a subscription without using Apple’s own in-app payment system.
That’s significant because Apple charges up to a 30% fee on top of purchases made in the App Store.
The Spotify update comes as Apple updated developer terms for the App Store, to comply with a U.S. federal judge’s ruling ordering Apple allow third-party payment options and to stop restricting developers’ ability to promote offers to their customers.
Apple made the change to the App Store rules, which apply to U.S. developers, as it appeals the court ruling that came down Wednesday.
A federal judge found Apple was in willful violation of a 2021 court order in the Epic Games v. Apple lawsuit, which prohibited Apple from letting developers promote other forms of in-app payment in their iOS apps.
The decision paves the way for Epic’s “Fortnite” to return to the App Store in the U.S.
For Spotify, the updated version of its iOS app is “rolling out to U.S. consumers as we speak,” company spokesperson Jeanne Moran said.
“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.”
She added,
“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.”
Asked about the Epic decision on Apple’s earnings call Thursday, CEO Tim Cook said:
“We strongly disagree with the decision. We will comply with the court’s order and we will appeal.”
He added “the outcome is unclear” regarding the impact to App Store revenue going forward.
The updated Spotify app includes certain features now available to American users. Those include:
- The option to use other payment options beyond just Apple’s payment system;
- Showing how much something costs in the Spotify app, including pricing details on subscriptions and information about promotions that will save money;
- The ability to click a link to purchase the subscription of choice, to upgrade from a Free account to a Premium plan or changing Premium subscriptions from Individual to a Student, Duo or Family plan.
