![]() But that makes it harder for Spotify to upsell premium subscriptions to its free tier users, which is a key part of its business model. Instead most music streaming services just don’t allow in-app payments at all. ![]() But that then makes their services look more expensive than Apple Music. Given a streaming service’s profit margin is around 30%, that is only viable if they pass the commission onto the consumer. Such payments currently have to be taken via Apple’s own commission-charging transactions platform, and the rules have also traditionally banned app-makers from sign-posting alternative payment options available elsewhere online.įor services like Spotify and Deezer, it means if they sell subscriptions within their apps they have to pay a 15-30% commission to Apple. This relates, of course, to Apple’s App Store rules, and in particular the rules governing in-app payments on iOS devices. Spotify and Deezer were among the signatories of a letter sent to the European Commission earlier this week urging the European Union to finally and urgently end the “abusive behaviours” of big bad Apple. Business News Digital Legal Spotify and Deezer call for urgent action from the European Union over Apple’s App Store rules By Chris Cooke | Published on Friday 20 January 2023
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