Spotify says Apple has rejected its app update with price information for EU users

A logo of Spotify is seen on a beach during the Cannes Lions International Festival of Creativity in Cannes, France, June 20, 2023. REUTERS/Eric Gaillard/File Photo

(Reuters) - Apple has rejected Spotify's new version of its iOS app with in-app pricing information for users in the European Union, the audio streaming firm said on Thursday.

The Swedish company submitted a new version of its app to Apple with basic pricing and website information, which is a minimum requirement under the European Commission's ruling in its music streaming case, it said in a post on X on Wednesday.

Spotify said Apple rejected its update in a response directly sent to the company.

"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. Their disregard for consumers and developers is matched only by their disdain for the law," a spokesperson for Spotify said in a statement.

Apple said it will approve the new version of the app after Spotify accepts the terms of the Music Streaming Services Entitlement in the European Economic Area (EEA), and resubmit it for review.

"This entitlement is required even if your app does not include an external link," Apple said in a response to Spotify about the app update.

Under Apple's proposal, Spotify and other streaming services can include links to their websites to inform users of payment options outside its App Store and the company would charge a 27% commission on transactions made through a link.

Spotify did not include the in-app link in the update submitted to Apple.

Spotify said it does not want to be a part of Apple's entitlement as it is a new set of anti-steering restrictions and includes the 27% commission on digital purchases made through links.

"We are currently assessing whether Apple has fully complied with the decision," a spokesperson for the European Commission said, adding the Commission will also assess any changes implemented by Apple to its App Store business terms under the Digital Markets Act.

In March, Brussels fined Apple with 1.84 billion euros ($1.97 billion) for thwarting competition from music streaming rivals via restrictions on its App Store.

($1 = 0.9328 euros)

(Reporting by Jaspreet Singh in Bengaluru; Editing by Saumyadeb Chakrabarty and Shailesh Kuber)

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