The recent announcement from Apple about how it will comply with the Digital Markets Act led to a public outcry from its critics, including Spotify. Spotify CEO Daniel Ek, while taking a more restrained tone in his comments during the Q4 2023 earnings call with investors, had previously referred to Apple’s plan as “extortion” and “a complete and total farce.” Spotify and other companies have been vocal critics of Apple’s compliance with the new law, which aims to foster greater competition but requires developers to pay new fees and commissions. Ek, however, stated that there is no downside to Spotify’s business and highlighted potential future upsides as a result of the new law.
Despite being a prominent critic, Spotify’s CEO expressed that the new terms would not have a negative impact on the company’s business or revenues. He mentioned that companies can continue to operate under their current terms with Apple, which suggests that nothing is changing for Spotify in the near term despite the new law going into effect. Ek also highlighted the potential for future upsides, including opportunities to offer fan clubs and in-app purchases on the platform, which could significantly impact Spotify’s revenues. The company is looking forward to leveraging the new competitive landscape and exploring innovative opportunities that were previously restricted in the iOS ecosystem.
In response to Ek’s comments, Apple argued that Spotify can continue to pay Apple nothing, even under the new terms of the DMA compliance plan and highlighted that more than 99% of developers would pay the same or less to Apple under the new terms. Despite the differences in opinion, it is evident that Spotify is planning to capitalize on the potential opportunities presented by the new law.