Sunday, November 17, 2024

Spotify to Launch In-App Shopping in EU, Enabled by DMA Rollout

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Spotify will launch in-app shopping on iPhones in the European Union (EU) on March 7. 

This new offering is enabled by the rollout of the EU’s Digital Markets Act (DMA), which prohibits the restrictions and 30% fees that Apple currently places on apps offering through its App Store, Spotify said in a Wednesday (Jan. 24) blog post

“For years, even in our own app, Apple had these rules where we couldn’t tell you about offers, how much something costs, or even where or how to buy it. We know, pretty nuts,” Spotify said in the blog post. “The DMA means that we’ll finally be able to share details about deals, promotions and better-value payment options in the EU.” 

Apple did not immediately reply to PYMNTS’ request for comment. 

The DMA aims to curb the dominance of Big Tech companies by targeting so-called gatekeeper services and requiring them to dismantle their “walled gardens,” CPI, a PYMNTS Company, reported on Jan. 2. 

The law mandates that major players — including Apple, Alphabet, Meta, Amazon, ByteDance and Microsoft — open up their closed ecosystems. 

Consumers have complained for years about the lack of information and other challenges they face when looking to purchase a subscription or audiobook through Spotify on their iPhone, Spotify said in its Wednesday blog post. 

However, due to Apple’s restrictions, those challenges were out of Spotify’s control, the post said. 

One of the new features that Spotify will begin rolling out in the EU in March is direct communication in its app about subscription offerings, upgrades, product prices, deals and promotions, according to the post. 

Another feature that Spotify will add in the EU is in-app payments, the post said. For example, users will be able to upgrade to a premium subscription or buy an audiobook in the app with a couple of clicks. 

Spotify will also enable app users in the EU to purchase audiobooks directly and download other Spotify apps onto their iPhone, per the post. 

“It should be this easy for every single Spotify customer everywhere,” Spotify said in the blog post. “But if you live outside certain markets, you will continue to encounter frustrating roadblocks because of Apple’s ridiculous rules. That’s why developers everywhere are continuing to ask other governments to pass their own laws like the DMA.” 

In another adjustment made to adapt to the DMAMeta said Monday (Jan. 22) that it will offer users in Europe more choices regarding how they consume its services. For example, Facebook Messenger users will now have the option to decide whether they want to link their Facebook account with the Messenger account or maintain separate accounts for both services. 

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