TECH - Spotify To Bypass Apple's 30% App Store Fee In Europe Via In-App Purchases: Report | Benzinga
In a strategic move, Spotify Technology SA (NYSE:SPOT) will allow its European users to make in-app purchases for audiobooks and subscription plans, bypassing Apple Inc. (NASDAQ:AAPL)’s 30% fee on the App Store.
What Happened: Spotify will implement this change in March in response to the new competition law for Big Tech in Europe, reported Reuters on Wednesday. This move is expected to ease the longstanding tension between app developers and Apple over the App Store’s fee structure.
Spotify has been locked in a legal battle with Apple, alleging that it was compelled to raise its monthly subscription prices to cover the costs associated with Apple’s App Store regulations. The Digital Markets Act (DMA), which all major tech companies must adhere to by Mar. 7, requires firms to treat their products and services the same way they treat those of their competitors.
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