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In a bold move, Spotify has decided to sever all ties with Apple’s in-app payment system for both new and existing subscribers, effectively ending Apple’s role as a payment intermediary for even long-time customers. The music streaming giant has long criticized Apple’s “tax” on App Store transactions and has been refusing to allow new Premium subscribers to pay through the app since 2016. While from 2014 to 2016, Spotify Premium subscribers had the option to sign up and pay via the App Store, that is no longer the case.
Spotify has begun alerting legacy customers that they can no longer use Apple payments. Emails have been sent to affected subscribers informing them that the company can no longer accept Apple in-app payments for Premium subscriptions. At the end of their billing period, accounts will be automatically switched to the free ad-supported plan. To continue using Premium, customers must resubscribe using Spotify’s direct payment methods such as credit cards or PayPal.
According to a Spotify spokesperson, the company recently informed “a small number of users that a legacy payment method that their Premium account is attached to is being deprecated. Users notified by email will automatically move to a Free account from their next billing cycle. Users will then have the option to upgrade to a Premium account by logging into their account at Spotify.com. These actions will help ensure that we can continue to provide a consistent best-in-class subscription experience for all our users.”
Spotify has been sparring with Apple for years, accusing the tech giant of imposing unfair App Store policies. In 2019, Spotify filed an EU antitrust complaint against Apple, arguing that Apple’s control of the App Store limits competition. While Spotify has also raised objections to Google Play’s fees, the two companies recently reached a deal that allows Spotify Android app users to choose between Spotify payments or Google Play Billing.
It is worth noting that few Spotify subscribers will be impacted by the move as most pay Spotify directly. In a 2019 filing, Apple disclosed that it collected a 15% fee from only 680,000 of Spotify’s over 100 million Premium subscribers via the App Store. Nonetheless, this move by Spotify signals a significant shift in the ongoing battle between the two tech giants over control of the App Store and app payment systems.
