Spotify submitted a major app update to the App Store with several significant changes Thursday. The company moved quickly to capitalize on a judge’s Wednesday ruling that requires Apple to allow external payment links in apps effective immediately.
Update: Apple quickly approved Spotify’s update. The company formally changed its App Store rules Thursday to bring them into “compliance with a United States court decision regarding buttons, external links, and other calls to action in apps.”
Apple plans to challenge the ruling, which forces major changes on the company’s handling of the App Store.
During a conference call with Wall Street analysts Thursday, Apple CEO Tim Cook said the company strongly disagrees with the judge’s ruling. “We’ve complied with the court’s order, and we’re going to appeal,” he said.
Spotify’s new app update will bring big changes
U.S. District Judge Yvonne Gonzalez blasted Apple for willfully defying her 2021 injunction in an 80-page ruling Wednesday. As part of the original order, Apple needed to allow developers to collect payments from third-party sources without charging them any transaction fees. Instead, Apple charged them a commission of 12% to 27% on such transactions.
Gonzalez mandated Wednesday that Apple immediately allow developers to use external links for collecting payments.
Jumping on the bandwagon, Spotify submitted an app update to the U.S. App Store with several changes:
- Can finally see how much something costs in our app, including pricing details on subscriptions and information about promotions that will save money;
- Can click a link to purchase the subscription of choice, upgrading from a Free account to one of our Premium plans;
- Can seamlessly click the link and easily change Premium subscriptions from Individual to a Student, Duo, or Family plan;
- Can use other payment options beyond just Apple’s payment system—we provide a wider range of options on our website; and
- Going forward, this opens the door to other seamless buying opportunities that will directly benefit creators (think easy-to-purchase audiobooks)
Spotify removed the option to pay for its streaming music service from its app years ago in reaction to Apple’s requirement that Spotify give it part of all subscription fees.
Apple reportedly approved Spotify’s update Friday.
“In a victory for consumers, artists, creators, and authors, Apple has approved Spotify’s U.S. app update,” a Spotify rep told The Verge.
Consumers stand to gain from these changes
All of these changes will benefit end users, though they are not exactly in Apple’s favor. The biggest change? The update will enable Spotify users in the United States to use the Spotify app to purchase a subscription plan outside the App Store. This will allow them to avoid the so-called Apple tax. Plus, Spotify can inform its users about promotions, again helping them save money.
It’s clear that by posting about this update on its blog, Spotify intended to put pressure on Apple. If Apple had rejected the app update, it would have invited more negative publicity.
