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Spotify and Apple Again Clash Over App Store Rules and Fees

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Spotify has not been able to get Apple to approve an EU app update that added information on subscription pricing and links to the Spotify website, and it turns out that’s because Spotify has not agreed to the terms of Apple’s Music Streaming Services Entitlement.

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A recent antitrust ruling from the European Commission fined Apple nearly $2 billion and mandated that Apple “remove anti-steering provisions” for music apps in the European Economic Area (EEA). As a result, Apple updated its App Store rules with a Music Streaming Services Entitlement that allows music apps in the EEA to inform users of other ways to purchase digital music content or services and to add website links for purchasing digital music subscriptions.

That might sound like a win for apps like Spotify, but Apple requires developers who use the entitlement to pay a 27 percent fee (reduced for subscriptions older than one year and for small businesses) on all website purchases referred by Apple. So if Spotify puts a link in its app and a user clicks it and subscribes, Spotify would owe Apple a 27 percent commission (three percent less than the App Store purchase fee).

Spotify does not currently pay Apple any money, and it does not want to. Directly after the European Commission’s ruling, Spotify on March 5 submitted an EU app update that had information on subscription pricing and links to its websites for customers to make purchases. This was prior to when Apple had announced its entitlement plan.

Apple ignored Spotify’s app update, and Spotify complained on March 14 that Apple had not “acknowledged or responded” to its ‌App Store‌ submission. Spotify at the time called on the European Commission to force Apple to approve its app update.

Apple kept ignoring Spotify’s submission, until today, when Spotify submitted a new version of its app. Spotify said on X (formerly Twitter) that the update has no links and includes just the “bare minimum” on pricing and a mention that subscriptions can be purchased from Spotify, which it claims is acceptable under the European Commission’s ruling.

Spotify left out a small detail, though. It turns out that Spotify did not request a Music Streaming Services Entitlement and did not agree to Apple’s new terms for the entitlement. The ‌App Store‌ Review Team sent Spotify a letter (via AppleInsider) that says the entitlement is required even though there is no link because Spotify’s submission has a call to action to purchase a Spotify subscription on its website.

We are reaching out to let you know about new information regarding your app, Spotify – Music and Podcasts, version 8.9.33.

As you may be aware, Apple created a new Music Streaming Services Entitlement (EEA) for iOS and iPadOS music streaming apps offered in EEA storefronts. The entitlement allows music streaming apps to use buttons, external links, or other calls to action to direct customers to a purchase mechanism on a website owned or controlled by the developer. You must accept its terms before adding any of these capabilities to your app. Please find more information about the entitlement here.

We note that your current submission includes a call to action to purchase a Spotify subscription on your website. As such, you must accept the terms of the Music Streaming Services Entitlement (EEA) and include the entitlement profile in your app for submission. To be clear, this entitlement is required even if your app does not include an external link (nor does it require that you offer an external link). We will, however, approve version 8.9.33 after you accept the terms of the Music Streaming Services Entitlement (EEA) and resubmit it for review.

If you have any questions about this information, please reply to this message to let us know.

Apple says that if Spotify agrees to the terms of the Music Streaming Services Entitlement, it will approve the latest Spotify app update. Without a link to the Spotify website, Spotify would presumably not have to pay Apple a commission because there would be no way for Apple to track clicks from its app to Spotify, but there may be some other part of the entitlement that Spotify is reluctant to agree to.

Apple does not plan to let Spotify include a link to the Spotify website without paying the required 27 percent fee, but adding subscription pricing information without a link does seem to be permitted per the language of Apple’s letter to Spotify.

Spotify has confirmed that it does not plan to opt in to Apple’s EU ‌App Store‌ business terms, which are separate from the Music Streaming Services Entitlement and are part of the changes that Apple implemented as required by the Digital Markets Act.

Because Spotify does not want to agree to the EU ‌App Store‌ business terms, it is limited on the features that it can add to its app in the EU. To offer the Spotify app directly from its website in the EU, Spotify would need to agree to the terms and would have to pay a 0.50 euro Core Technology Fee for users that download the app.

Spotify does not let customers sign up for a Spotify subscription in the app as of right now, so it does not have to pay anything. Web-based distribution and linking out to the Spotify website both have associated fees, and Spotify is aiming for a solution where it does not have to pay anything. Spotify’s full statement on its update, from Chief Public Affairs Officer Dustee Jenkins:

Despite Apple’s attempts to punish developers with new fees, we remain committed to giving consumers real choice in our app at no increased cost. That’s why we have submitted a new update to Apple. It features basic pricing and website information – the bare minimum outlined under the European Commission’s ruling in its music streaming case.

By charging developers for communicating with consumers through links in-app, Apple continues to break European law. It’s past time for the Commission to enforce its decision so that consumers can see real, positive benefits.

Though Spotify has a clear path to get its app update approved, the company claims that Apple is breaking European law by charging the 27 percent fee for links and it calls on the European Commission to “enforce its decision.”



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ISPs roll out mandatory broadband ‘nutrition’ labels that show speeds, fees and data allowances

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You can now ensure that you’re not going to be hit by hidden fees and taxes before you sign up with an internet service provider (ISP). Starting today, big ISPs with more than 100,000 subscribers will be required to display “nutrition labels” both in store and online under a new FCC rule. Those labels have to show the companies’ plans, fees and any additional costs, such as activation fees and upfront or rental fees for modems and other equipment.

They also have to show whether a particular amount that’s being advertised is an introductory or a discounted rate and how long you can enjoy that lower rate. Plus, the labels have to indicate each particular plan’s download and upload speeds, as well as any early termination fee associated with it. ISPs can’t hide these labels behind multiple clicks or camouflage them with other elements that make them hard to see. They have to be accessible from your customer account portal, and ISPs should give you a copy if you ask.

The FCC first floated the idea of nutrition labels for ISPs back in 2016, but it wasn’t until 2022 that it formally introduced rules requiring them to be displayed at the companies’ points of sale. As you can see in the image below, it resembles the nutrition labels for food and will (theoretically and hopefully) account for every dollar you pay for a wired or wireless plan. Back when the rule was announced, FCC Chairperson Jessica Rosenworcel explained that the agency chose to approve and implement it as part of its efforts to “end the kind of unexpected fees and junk costs that can get buried in long and mind-numbingly confusing statements of terms and conditions.”

Based on the FCC’s website, providers with less than 100,000 subscribers will be given a bit more time to comply and have until October 10. And in case you come across any ISP that isn’t displaying any label even when they should or is showing inaccurate information, you can file a complaint with the commission through its official portal.

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Vodafone’s Fibre 2 broadband package is only £26 per month with no upfront fees – and you have less than a week to claim it!

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For those of you scouring the markets for quality fibre broadband deals, look no further than this broadband offer from Vodafone.

At the moment, the broadband provider is offering its Fibre 2 broadband package for only £26 a month, without any upfront fees. With this, you’ll need to sign a 24-month contract giving you superfast average download speeds of 67Mbps and upload speeds of 20Mbps, all with unlimited data.

With these broadband speeds, it’s a fantastic choice for small to medium households with three to four active broadband users. The connection will allow you to play games online, stream on several devices in UHD, and use cloud storage all at the same time. This offer is also boosted by Vodafone’s excellent ‘WiFi Hub’, which works to optimise your broadband connection.

You even get a landline included in the deal and Vodafone promises to fix this offer price until April 2025. You may also be offered the opportunity to upgrade to a ‘Pro II’ broadband package, which is priced at £40 a month. This will give you a more powerful router, dedicated support and automatic 4G backup should you suffer a broadband outage.

This offer expires on April 3, so you’ll need to be quick if you want to make the most of it. Another consideration is that you’ll only be able to get this fibre broadband deal if you can access Vodafone’s fibre network – although you can check this when you look to sign up. Lastly, if you have a Full Fibre connection at your property, you might be offered the ‘Full Fibre’ version of this deal, which offers slightly faster download speeds.

Why should I choose Vodafone Broadband?

Vodafone is now one of the UK’s best broadband providers, but we aren’t surprised by this, as it has plenty to offer customers.

As you can see from the deal above, it has some great value packages available and it’s even won awards for its affordability. What’s more, these range from slower fibre speeds, through to ultrafast Full Fibre options, which ultimately can suit the online needs of pretty much every household or business.

It’s current selection of packages includes:

 – Fibre 1 – 38Mbps

 – Fibre 2 – 67Mbps (a Full Fibre version is also available)

 – Fibre 100 – 100Mbps

 – Fibre 200 – 200Mbps

 – Fibre 500 – 500Mbps

 – Fibre 900 – 910Mbps

As we also mentioned in our featured deal, Vodafone can also offer phone lines, mobile phone services and upgrades to its ‘Pro II’ tariffs that come with a wealth of extras. On certain deals, you can also get Apple TV 4K with 4K Dolby Vision. 

Vodafone also offers a quick and easy switching service if you’re moving to its broadband from a provider that uses the same network. 

Where Vodafone might fall down for some consumers is that its broadband and TV offering isn’t as strong as providers like Sky and Virgin Media. Plus, it does receive some criticism for its customer services – according to its Trustpilot scores – although these are largely positive. 

So if you still want to shop around or you just want to see how Vodafone measures up against the competition, just enter your postcode into our widget below. We’ll then bring up all the best broadband deals in your area.

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The EU is already investigating Apple, Meta and Google over fees and defensive policies

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We had the first wave of changes and tweaks to Apple, Google and other big tech companies’ policies and services just before the EU’s sweeping Digital Markets Act (DMA) took a harder line against monopolistic behaviors and practices. See: third-party app stores with Apple, the option to pay for Facebook (haha!), the ability to choose your own default browser, search engine, and more.

But the EU isn’t quite satisfied. Alphabet and Apple, says the European Commission, have not sufficiently allowed “app developers to ‘steer’ consumers to offers outside the gatekeepers’ app stores, free of charge.”

The EC says Alphabet might still be leading users to Google-owned services like Google Flights. Apple may not be allowing users meaningful choice in selecting alternatives to default iOS services or preferences, such as the ability to uninstall any preloaded app.

In January, Apple announced changes to the App Store to comply with the DMA, including the ability to use alternative app marketplaces on iOS in the EU. Included in Apple’s updates was a new “core technology fee” of €0.50 developers will have to pay per user per year after the first million installs of an app — even if a user downloads the software from a third-party marketplace. Many of Apple’s rivals about the App Store changes. Some criticized the company’s fees for third-party payments in the US too.

— Mat Smith

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Under-14s are completely banned.

Florida Governor Ron DeSantis just signed a bill into law with far stricter rules on how kids under 16 can use and access social media. The bill requires a parent or guardian’s consent for 14- and 15-year-olds to make an account or use a pre-existing account on a social media platform. The companies behind these platforms must also abide by requests to delete these accounts within five business days. Failing to do so could rack up major fines, as much as $10,000 for each violation. The bill doesn’t name any specific social media platforms but suggests any service that promotes “infinite scrolling” will have to follow the new rules. So yeah, the usual suspects.

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You will still have to pay for them.

Spotify has teamed up with content partners BBC Maestro, PLAYvirtuoso, Thinkific Labs Inc. and Skillshare to offer content in making music, getting creative, learning business and living healthily. The test courses are available only to UK users, with free and premium subscribers receiving at least two free lessons per course. The series will range from £20 ($25) to £80 ($101), regardless of a person’s subscription tier. The course content seems to be somewhere between Masterclass and LinkedIn Learning — make of that what you will.

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15 teens will advise the company.

TMATMA

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Last summer, TikTok said it planned to form a “youth council” of teens to advise the company as part of a broader push to beef up safety features for the app’s youngest users. That group is now official, just as TikTok contends with a bill that would force parent-company ByteDance to sell the app or face a ban in the United States. While it’s unclear how much influence TikTok’s youth council will ultimately wield over the company’s policies, it underscores just how important teens are to the platform. The company has tried to mobilize its users, many of them teens, to oppose the bill being discussed by the US government.

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Meta, Microsoft, X and Match Join Epic Games in Protesting Fees for Non-App Store Purchase Links

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Meta, Microsoft, X, and Match today joined Epic Games to protest the way Apple complied with a court ruling requiring it to walk back its anti-steering rules. In an amicus brief in support of ‌Epic Games‌ (via The Wall Street Journal), the four companies said that the fees Apple is charging are too high, and that there are too many restrictions on how developers link to their websites. “The Apple Plan comports with neither the letter nor the spirit of this Court’s mandate,” reads the brief.

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For context, Apple was ordered to change its App Store rules in 2021 as part of the decision in the ‌Epic Games‌ case. The judge took issue with the anti-steering guidelines that kept apps from directing consumers to lower prices available outside of the ‌App Store‌. Apple delayed implementing the changes while it attempted to appeal the ruling, but the appeal was not successful and Apple had to update its rules in January.

Developers are now allowed to include a single link in their app, with that link going to a website where customers can make a purchase without using the in-app purchase system. Apple is still collecting commission for purchases made this way, requiring developers to pay between 12 and 27 percent (three percent lower than the standard 15/30 fee).

‌Epic Games‌ last week told the court that Apple has not complied with the order, and that the Cupertino company should be held in contempt of court. ‌Epic Games‌ said that Apple’s implementation makes links “commercially unusable” due to the fee and the “accompanying web of restrictions.”

Microsoft, Meta, X, and Match further complained that Apple is not allowing apps to include “even the most basic information” about alternative purchase options. Apple does not allow apps to let customers know about how to receive a discount by purchasing directly from a website, for example.

Meta said that it should be able to direct users to the web to pay for boosted posts to avoid Apple’s fee, and Microsoft complained that Apple’s rules limit options for providing subscriptions and discounts. X, formerly Twitter, said that Apple’s 27 percent fee eliminates incentives to include an external link, while Match claimed that the rules prevent price competition for digital transactions.

Apple in January claimed that it was in full compliance with the injunction, and that it has given developers a way to inform customers about alternative purchase mechanisms both in their apps and outside of their apps.

The amicus brief filed today supports ‌Epic Games‌’ recent filing. ‌Epic Games‌ has asked the court to force Apple to bring its policies into compliance with the injunction, so it will be up to the court to decide whether Apple’s rule change does enough to satisfy the requirements of the initial judgment.

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EU Antitrust Chief Warns Apple About App Store Fees and Safety Warnings

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Key parts of Apple’s compliance with the Digital Markets Act (DMA) are set to be investigated by European regulators based on developer feedback, the EU’s antitrust chief warned on Tuesday.

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In an interview with Reuters, the European Commission’s Executive Vice-President Margrethe Vestager said that Apple’s introduction of new fees was already being looked at as a potential attempt to dissuade developers from using alternative app stores.

“There are things that we take a keen interest in, for instance, if the new Apple fee structure will de facto not make it in any way attractive to use the benefits of the DMA. That kind of thing is what we will be investigating,” she told Reuters.

Apple enabled alternative app stores in the EU earlier this month, allowing third-party app stores to offer a catalog of other developers’ apps as well as the marketplace developer’s own apps. Apple also has a new fee structure as part of the change that has already come under fire from several developers and EU associations.

Vestager also warned Apple and other companies against discouraging users from switching to other app marketplaces by disparaging them, saying this kind of behaviour could trigger an investigation. Apple has already claimed some of the DMA-enforced changes could expose users to security risks that they are otherwise protected against when using the App Store.

“I would think of it as unwise to say that the services are not safe to use, because that has nothing to do with the DMA,” said Vestager. “The DMA is there to open the market for other service providers to get to you and how your service provider of your operating system, how they will make sure that it is safe is for them to decide.”

“And of course, if we see or get the suspicion that this is in order to say that someone else are not doing their job of course, we might take initiatives to look into that,” she added.

Vestager said feedback from developers was key to whether she would launch investigations into companies that must comply with the DMA. Asked whether she had received any comments from third parties, she said: “Quite a lot.”

Apple’s app ecosystem changes in the European Union went into effect with the launch of iOS 17.4 on March 6. Apple has since been tweaking the app ecosystem rules that it introduced based on developer feedback and discussions with regulators.

For example, third-party app stores are now able to offer apps directly from their own catalog, and developers will soon be able to distribute apps directly from their websites as long as they meet Apple’s requirements.

Apple says it is also working a solution that would prevent its 0.50 euro Core Technology Fee (CTF) from bankrupting developers if their free app goes viral.

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Epic Games Accuses Apple of Charging ‘Unjustified Fees’ for Required Non-App Store Purchase Link

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Epic Games is once again after Apple, this time accusing the Cupertino company of violating a court ruling that requires Apple to allow developers to offer in-app links to direct customers to third-party purchase options on the web.

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Apple tweaked its U.S. App Store policies back in January, and developers are permitted to put one link in their apps that leads to a website where customers can make a purchase without using the in-app purchase system. Apple is still charging commission for these purchases, requiring developers to pay between 12 and 27 percent (three percent lower than the 15/30 standard fee).

‌Epic Games‌ is unhappy with the fee that Apple continues to charge, today telling the court that Apple has not complied with the order, and asking that Apple be held in contempt of court. ‌Epic Games‌ claims that the fees make the links “commercially unusable,” thereby subverting the injunction.

Apple violates the Injunction in three ways. First, with respect to External Links, Apple has imposed new fees and enacted a slew of new rules that work together to make the links commercially unusable. This new fee and accompanying web of restrictions subverts the purpose of the Injunction, allowing Apple to continue extracting its excessive commissions and making it effectively impossible for a developer to inform users about, and direct users toward, an alternative platform for making a purchase.

Second, Apple continues to categorically prohibit any steering using “buttons” or “other calls to action”. Specifically, Apple does not allow External Links that resemble a “button” in any way.

Third, Apple’s Guideline 3.1.3 still prohibits certain apps, including all multiplatform services (i.e., apps that operate across multiple platforms and allow users to access the same content across these platforms, including popular games such as Minecraft), from “within the app, encourag[ing] users to use a purchasing method other than in-app purchase”. This language expressly contravenes the Injunction by prohibiting any steering to alternative purchasing methods.

‌Epic Games‌ collected statements from other developers that have spoken out against Apple’s App Store fees, including Paddle CEO Christian Owens and Down Dog CEO Benjamin Simon.

Apple was initially ordered to make the ‌App Store‌ changes in 2021 as part of its court battle with ‌Epic Games‌. Judge Yvonne Gonzalez-Rogers, who oversaw the case, took issue with Apple’s anti-steering rules. Apple was able to delay implementing the ‌App Store‌ changes for a few years while it appealed, but none of the courts decided to change the verdict. Apple ultimately took it to the Supreme Court, but the court declined to hear the case, so Apple had to comply immediately at the beginning of the year.

‌Epic Games‌ claims that the fee Apple charges for the link is “financially unattractive” for developers who want to choose another payment solution, and it “prevents any meaningful competition between payment solutions.” The company wants the court to require Apple to bring its policies into compliance with the injunction.

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