Subscriptions on Apple products may be about to get a bit cheaper in Europe as Spotify’s complaints see progress against “unfair” surcharges.

A new report from Bloomberg suggests that European regulators are preparing to ban Apple’s anti-steering rule for music streaming services. This move would allow developers of music streaming apps to direct users to their own payment partners, instead of being forced to use Apple’s App Store payment system.

In 2019, Spotify filed a complaint with the EU. They alleged that Apple’s rules on their app store were anti-competitive. Apple takes a 30% cut of payments made in-app if they’ve been downloaded from their App Store.

In addition, Apple blocks apps from directing users to make payments elsewhere. Spotify doesn’t allow its users to pay for subscriptions through their Apple app, instead recommending that they sign up elsewhere before using the Apple app to avoid the charges. However, they’re unable to redirect users to a browser link where they can sign up.

This has forced many companies to either add an extra surcharge to their customers or to lose money. Spotify has described this as anti-trust behaviour, and has been petitioning the EU to act for years.

Ex-Head of Global Affairs at Spotify, Horacio Gutierrez said in 2021: “It is clear to me that when it comes to their policies on app stores and the way in which they’re treating [not just] competing apps, but a whole variety of apps on their App Store, is just unfair, and I think it deserves regulatory attention and I think they’re getting regulatory attention for it.”

The Latest Development

According to Bloomberg, EU regulators are close to issuing a ruling that would prohibit Apple from blocking music services from pushing their users away from the App Store to alternative subscription options. This ruling is expected to be issued in early next year.

This ruling could have a significant impact on the music streaming industry. If Apple is forced to allow developers of music streaming apps to direct users to their own payment partners, it could lead to lower prices for consumers. It could also give developers more control over their apps and more revenue.

What’s Next

It is unclear if Apple will appeal the ruling or if it will make changes to its App Store practices in the United States. However, this ruling is a major victory for Spotify and could set a precedent for other app developers.