Apple blocked Spotify’s latest EU update, again

Spotify submitted a new version of its iOS app with in-app pricing information for users in the European Union about how much they’ll pay for subscriptions made outside of Apple’s payment system — but Apple has stonewalled it again.

Spotify says Apple rejected the request because it won’t request an entitlement and pay Apple the commission it takes from purchases made from external links. As part of an EU ruling from earlier this year, Apple must allow music streaming apps to include external purchase links. However, Apple’s updated rules say app developers will need to use the Music Streaming Services Entitlement and that it’s still taking a commission from these purchases.

Apple spokesperson Hannah Smith provided the message sent from Apple to Spotify, which says, “This entitlement is required even if your app does not include an external link (nor does it require that you offer an external link). We will, however, approve version 8.9.33 after you accept the terms of the Music Streaming Services Entitlement (EEA) and resubmit it for review.”

According to TechCrunch, the latest version of the app doesn’t contain a direct link to subscription plans on Spotify’s website, something the company hoped would allow it to skirt the 30 percent cut Apple takes on subscriptions made via the App Store. Instead, EU users will be directed to manually visit Spotify’s website via a web browser in order to purchase cheaper subscription plans.

A previous version of the app that did contain website links was submitted by Spotify last month. Apple didn’t approve the update and “neither acknowledged nor responded” to the submission, according to Spotify. The company says the latest version it was trying to get approved features the “bare minimum” pricing and website information, as outlined under the European Commission ruling that fined Apple €1.84 billion (about $2 billion).

“Apple has once again defied the European Commission’s decision, rejecting our update for attempting to communicate with customers about our prices unless we pay Apple a new tax,” Spotify spokesperson Jeanne Moran tells The Verge. “Their disregard for consumers and developers is matched only by their disdain for the law.”

The EU’s ruling followed a four-year investigation into App Store rules that prevented music services from advertising cheaper subscription deals outside of the iOS platform. That investigation, itself spurred by an antitrust complaint Spotify raised in 2019 over the 30 percent “Apple Tax,” found that Apple had “abused its dominant position in the market” by preventing developers from telling their customers about cheaper alternative services.

The ruling means Apple needs to let music streaming developers freely communicate with their own users. Apple will also still need to approve Spotify’s latest app submission before EU customers can see updated pricing information. “It’s past time for the Commission to enforce its decision so that consumers can see real, positive benefits,” said Spotify’s chief public affairs officer, Dustee Jenkins.

Meanwhile, the EU’s Digital Markets Act (DMA) forced Apple to make changes to its App Store that introduced third-party app marketplaces and alternative fees for developers. Apple’s compliance has been described as “malicious,” though, with Spotify calling the company’s alternative Core Technology Fee “extortion, plain and simple.” Spotify says it won’t be adopting Apple’s optional DMA changes.

The EU’s antitrust case is separate from the above-mentioned DMA regulations, but Apple has lashed out against both decisions, saying it would appeal the $2 billion fine. The European Commission has also had to intervene in getting Apple to reverse its decision to revoke Epic Games’ developer license after Epic CEO and longtime Apple critic Tim Sweeney called the company’s DMA compliance plans “hot garbage.”

Update April 25th, 9:40AM ET: Noted that Apple rejected Spotify’s submission.