Spotify’s U.S. App Update Approved by Apple

Spotify’s U.S. app update gained Apple’s approval. It now shows pricing and external payment links. This follows a judge’s ruling. The judge barred Apple from charging commissions on off-app purchases. Spotify announced this on Friday.

Long-Standing Dispute

Spotify clashed with Apple for years. Apple’s App Store policies were the issue. They required a commission on in-app purchases. This included subscriptions. Other tech firms faced similar conflicts.

Court Ruling Drives Change

U.S. District Judge Yvonne Gonzalez Rogers acted. She ruled Apple violated a prior order. The order came from an Epic Games lawsuit. Apple must stop off-app purchase commissions. Spotify submitted the update Thursday.

Consumer Benefits

The update boosts transparency. Users see clear pricing in the app. They can access external payment links. This bypasses Apple’s 30% fee. Spotify’s Jeanne Moran praised the change. “It fosters choice for U.S. consumers,” she said.

Market Impact

Spotify’s shares rose over 6%. The jump happened in morning trading. Analyst Jeffrey Wlodarczak called it a “material win.” It levels competition with Apple Music. Spotify no longer absorbs Apple’s fees.

Apple’s Response

Apple will comply with the ruling. It disagrees with the decision. The company plans to appeal. Apple did not comment to Reuters.

Spotify’s Growth

Spotify hit 268 million subscribers. It reported its first annual profit in February. Strong user growth fueled this. Price hikes and cost cuts helped.