European Union regulators continue to crack down on how Apple operates in European countries, as EU regulators are planning to force Apple to allow competing music services like Spotify to direct users to payment methods outside of the App Store’s in-app purchase system.
If Apple does not allow outside payments, it could face a fine of as much as 10% of its annual sales, according to Bloomberg. The decision is slated to be announced in early 2024, the report says.
Apple currently does not allow developers to let users know of payment options other than the App Store’s in-app purchasing system in the apps. However, it does allow developers to inform customers by email. Once the proposed EU regulations go into effect, Apple would be required to allow devs to steer users to outside payment options. It hasn’t been made clear whether or not Spotify would be allowed to accept payment from inside the app or if it will merely be able to post mention of alternative payment options.
Spotify currently does not allow customers to subscribe to its $10.99 per month premium level of service from inside of the iPhone app, as it does not want to pay Apple its usual 15% to 30% cut of the action for in-app purchases. Spotify has long argued that Apple’s in-app purchase rules is anticompetitive.
Apple has yet to respond to the report. If it does, we’ll update you in this space.