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Spotify readying for iOS in-app purchase return after years of fighting

Spotify iOS app code hints at preparations to reintroduce in-app subscriptions, reopening tensions with Apple over its 30% fee on purchases.

By
Shubham Sawarkar
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ByShubham Sawarkar
Editor-in-Chief
Shubham Sawarkar is a technology journalist at GadgetBond, covering Apple, AI, consumer technology, software, gadgets, and product launches. His work explores emerging technologies, industry developments, product...
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Dec 7, 2023, 11:08 AM EST
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Spotify readying for iOS in-app purchase return after years of fighting
Illustration for GadgetBond (Image: Spotify)
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After banning in-app subscriptions for nearly 7 years, Spotify has been discovered testing payment infrastructure that suggests in-app purchases may soon return on iOS. This could mark a notable shift in Spotify’s long-standing feud with Apple over App Store policies.

Buried in the code of Spotify’s latest iOS beta app is a reference to an in-app checkout flow and purchase retry screens, as first spotted by MacRumors contributor Aaron Perris. While details remain vague, the mere existence of payment-related code hints at upcoming changes to iOS subscription mechanics.

For years, Spotify has restricted iOS signups to its website, avoiding Apple’s up to 30% cut on in-app transactions. “You can’t upgrade to Premium in the app,” still reads Spotify’s iOS app. “We know, it’s not ideal.” This work-around resulted in public spats between the companies, centered on perceived anticompetitive behavior and App Store policy complaints.

Things operate differently on Android, where Spotify integrated “User Choice Billing” in late 2020. This Google-approved method allows direct billing relationships between developers and users, bypassing the Play Store – and its fees – entirely. Platform competition and added regulatory scrutiny seem destined to push Apple toward comparable concessions, beginning with additional regions and app categories over time.

Another plausible theory behind the renewed payment code is basic subscription price increases, as Spotify looks to counterbalance Apple’s now-unavoidable cut.

The timing coincides with company cost-cutting efforts, including multiple rounds of layoffs in the past year, targeting redundant spending on podcasts and audiobooks. With hundreds of millions in continued losses annually, additional revenue sources would help stabilize precarious finances.

Of course, without confirmation, Spotify’s intent remains unclear. Platform policy shifts take time, especially at Apple’s large scale, and Spotify itself has seen functionality rejected repeatedly, including issues around its recent audiobook launch.

While speculative, any regained iOS payment freedoms would remove a main point of contention between the rivals. For now, observers can only monitor iOS beta updates for further clues from Spotify itself.


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