Spotify plans to enable in-app purchases on iPhones in the EU, aligning with upcoming DMA

Spotify has announced its plans to update its iPhone app in Europe to allow in-app purchases of subscriptions and audiobooks, if Apple eases its Apple App Store 30% fee policies on digital goods and services. The move aligns with the upcoming Digital Markets Act (DMA) (set to be enforced in March), which prevents services like the App Store from charging app promotion fees or enforcing specific payment processors, and allow third-party developers to distribute iOS apps outside of the App Store.

And while apple has yet to disclose its specific plans for DMA compliance, Spotify expects changes to its app's user experience that would allow the streaming company to fully enable in-app payment functionality, allowing users to easily subscribe to Spotify Premium, purchase audiobooks, run promotional campaigns, and directly download other Spotify apps from its website on iPhones, significantly boosting Spotify's business and that of 90% of apps selling digital services on iOS.

It shouldn't take long until we find out to what extent Apple allows third-party developers to comply with the law, although the most recent App Store policies updates in the US allowing external payment, but with a 27% commission fee, already gives us an idea that the company will seek to make it as difficult as possible to avoid losing a significant portion of its revenue.