'Spotify To Start In-App Purchases On iPhone In Europe After DMA Takes Effect; The Move Will Help The Company Avoid Apple's 30% Fee For Purchases Through Its App Store' - CNA
Portfolio Pulse from Benzinga Newsdesk
Spotify will introduce in-app purchases for audiobooks and subscription plans on iPhones in Europe starting March, leveraging the new Digital Markets Act (DMA) to avoid Apple's 30% App Store fee. This move comes after a prolonged legal battle with Apple over its App Store policies. Apple is challenging the DMA and facing a separate $1 billion lawsuit from app developers. Meta Platforms has criticized Apple's App Store policies, advocating for more competition and distribution options for developers.
January 24, 2024 | 1:24 pm
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POSITIVE IMPACT
Meta Platforms' criticism of Apple's App Store policies aligns with the broader push for more competitive app distribution options, which could benefit Meta if changes are implemented.
Meta's position against Apple's App Store policies suggests that the company could benefit from a more open app distribution environment, which may improve its ability to reach users and developers.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Spotify's introduction of in-app purchases in Europe could boost revenue by avoiding Apple's fees and may attract more users with better-value payment options.
Spotify's ability to offer in-app purchases directly to consumers without Apple's 30% cut is likely to improve its profit margins and provide competitive pricing, which could lead to an increase in subscriptions and user engagement in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Apple may face a negative impact from the DMA as it challenges the new rules and contends with a $1 billion lawsuit from app developers over App Store policies.
The DMA's enforcement and the ongoing legal battles could lead to changes in the App Store's fee structure and policies, potentially reducing Apple's revenue from in-app purchases and weakening its grip on the app distribution market.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80