Apple [APPL:US] has implemented new policies on the App Store within the European Economic Area (EEA) to allow music streaming apps to inform users of ways alternative to its App Store of purchasing digital services, in a move to comply with a recent European Union (EU) mandate, as reported by Reuters on April 5. The new policies include permitting streaming app developers to invite users to provide their email addresses, so that they can receive links to the developers’ website where they can buy digital music content or services. Additionally, the developers are also allowed to inform users about where and how to purchase these items and the price. The new measures are expected to benefit millions of European music streaming consumers, who will be informed of more available options, including cheaper subscription methods outside of the App Store.

Apple’s compromise follows a USD2bn antitrust fine imposed by the European Commission in March. The penalty answered to a 2019 complaint made by Swedish music streaming service Spotify [SPOT:US], which accused Apple of hindering competitors from informing users about payment options beyond the App Store.Alongside the penalty, the Commission also asked Apple to remove its anti-competitive restrictions that banned app developers from fully informing users about alternative and cheaper music subscription services outside of the Apple Store. Apple stated that the new changes to its policies provide “even more” flexibility to music streaming service apps such as Spotify, which takes up around 56% share of the European market.

Sources:

https://www.reuters.com/technology/apple-let-music-streaming-apps-europe-link-own-websites-purchases-2024-04-05/

https://www.reuters.com/technology/apple-hit-with-over-18-bln-euro-eu-antitrust-fine-spotify-case-2024-03-04/

https://www.theverge.com/2024/3/4/24005938/european-commission-antitrust-apple-investigation-anti-steering-rules-app-developers