New EU Law Could Pave the Way for Spotify’s In-App Purchases

Apple’s App Store has generated hundreds of billions in revenue for developers since 2008, but its business practices have come under fire for how it shares the success with the entities that fill the store’s digital shelves. Spotify hasn’t been happy for a while because of Apple’s steep fee for in-app purchases, but the company has high hopes for a better experience and a new app after a new law takes effect in Europe.

The Digital Markets Act is coming online in the European Union, which prohibits the types of fees Apple charges developers. Without that 30 percent fee, Spotify believes its users will have a better experience, and, of course, it will make more money. To make the most of the change, the company developed a new app, recently releasing a video mockup on X.

There’s still some uncertainty for Spotify that could change how its app functions, even with the new law in effect. It’s unclear how Apple will change its policies to comply with the rules, which could significantly impact Spotify’s ability to collect payments and retain earnings.

If Spotify gets its wish and is granted freedom with in-app purchases, it stands to benefit on several fronts. The company offers a premium subscription service, and its audiobook business could get a boost from more convenient purchasing options within the app.

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