EU Plans to Let Spotify Direct Users to Other Payment Options on iPhone

Apple might soon face a setback in its EU antitrust battle with Spotify, which filed a complaint against the iPhone maker over four years ago.

EU regulators are planning to force Apple to allow competing music services like Spotify to direct users to payment methods other than the App Store's in-app purchase system within their apps, or face a fine of as much as 10% of its annual sales, according to Bloomberg. The decision is slated to be announced in early 2024, the report says.

Apple currently prevents apps from letting users know about a purchasing method other than the App Store's in-app purchase system within their apps, although it does allow developers to inform customers by email. If and when the EU's order takes effect, Apple would be required to drop this so-called "anti-steering" rule. It's unclear if Spotify will be allowed to accept payments directly within its app, or merely advertise other payment methods.

Spotify has been unwilling to let customers subscribe to its streaming music service for its usual price of $10.99 per month within its iPhone app, as it would receive less due to Apple's 15% to 30% commission on in-app purchases. Spotify has argued that being unable to let iPhone users know about other payment options is anticompetitive.

We will update this story if Apple responds to the report.