Apple just reported all-time high quarterly revenue for its services segment: a whopping $26.65 billion for the first three months of 2025. But that business, which includes the so-called “Apple tax” on app purchases and subscriptions, will likely take a hit following court-mandated changes to the App Store that the tech giant has now adopted for the U.S.
On Friday, Spotify said Apple approved the music streamer’s updated iOS app for the U.S., which among other things now lets you pay for a subscription without using Apple’s own in-app payment system. That’s significant because Apple charges up to a 30% fee on top of purchases made in the App Store. The Spotify update comes as Apple updated developer terms for the App Store, to comply with a U.S. federal judge’s ruling ordering Apple allow third-party payment options and to stop restricting developers’ ability to promote offers to their customers.
Apple made the change to the App Store rules, which apply to U.S. developers, as it appeals the court ruling that came Wednesday. A federal judge found Apple was “in willful violation” of a 2021 court order in the Epic Games v. Apple lawsuit, which prohibited Apple from letting developers promote other forms of in-app payment in their iOS apps. The decision paves the way for Epic’s “Fortnite” to return to the App Store in the U.S.
For Spotify, the updated version of its iOS app is “rolling out to U.S. consumers as we speak,” company spokesperson Jeanne Moran for the streamer told Variety.
“In a victory for consumers, artists, creators and authors, Apple has approved Spotify’s U.S. app update,” Moran said. “After nearly a decade, this will finally allow us to freely show clear pricing information and links to purchase, fostering transparency and choice for U.S. consumers. We can now give consumers lower prices, more control, and easier access to the Spotify experience.” She added, “There is more work to do, but today represents a significant milestone for developers and entrepreneurs everywhere who want to build and compete on a more level playing field. It’s the opening act of a new era, and we could not be more ready for the show.”
Asked about the Epic decision on Apple’s earnings call Thursday, CEO Tim Cook said “we strongly disagree” with the ruling and that the company plans to appeal. He said “the outcome is unclear” regarding the impact to App Store revenue going forward.
The updated Spotify app includes certain features now available to American users. Those include:
- Option to use other payment options beyond just Apple’s payment system;
- Showing how much something costs in the Spotify app, including pricing details on subscriptions and information about promotions that will save money;
- Ability to click a link to purchase the subscription of choice, upgrading from a Free account to a Premium plan as well as change Premium subscriptions from Individual to a Student, Duo, or Family plan.
According to Spotify, going forward, the changes pave the way “to other seamless buying opportunities that will directly benefit creators,” such as one-click-purchase audiobooks.
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