• Mon. May 20th, 2024

Music Streaming Services Now Have the Option to Offer Users Services Beyond Apple’s App Store, But at a Cost

BySamantha Jones

Apr 8, 2024
Changes made to Apple subscription conditions

Music streaming providers in the European Economic Area (EEA) will now have the option to offer their users services outside of the Apple App Store. However, Apple has stated that they will charge a fee of up to 27 percent of the purchase price for transactions made outside their platform. This new option comes after a large competition penalty was imposed on Apple by the EU Commission, triggered by a complaint from Spotify.

Apple has clarified that the Commission’s decision does not prevent them from charging fees for the use of their technologies and services. For subscriptions taken out within their own App Store, Apple currently charges a fee of 30 percent in the first year, which decreases to 15 percent thereafter. The new fee for links from music apps to external subscriptions is based on this model, with the fee dropping to 12 percent after one year.

In response to Apple’s restrictions, companies like Spotify and Netflix have stopped offering more expensive subscription options within their apps. The EU Commission recently issued a fine of 1.84 billion euros against Apple, focusing on competition in the music streaming market. This fine includes economic disadvantages for Spotify and is intended as a deterrent for future anti-competitive behavior.

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By Samantha Jones

As a content writer at newsnnk.com, I weave words into captivating stories that inform and engage our readers. With a passion for storytelling and an eye for detail, I strive to deliver high-quality and engaging content that resonates with our audience. From breaking news to thought-provoking features, I am dedicated to providing informative and compelling articles that keep our readers informed and entertained. Join me on this journey as we explore the world through the power of words.

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