[ad_1]
it is hot pod, verge’Newsletter about podcasting and the audio industry. Sign up Here for more information.
hello! Today, I’m looking at what Europe’s regulatory moves against Apple mean for Spotify and podcasting more broadly. Plus, a Lightning Round featuring all types of audio stories, from the purely commercial (cash flow on iHeart) to the delightfully criminal (a missing radio tower).
To be careful, I will not publish hot pod Due next week for the Hot Pod Summit and On Air Fest. Insiders, I’ll be back on Friday. As for the rest of you, I’ll see you in March.
If this proves to be true, it would be a major victory for Spotify in its ongoing battle with Apple. In 2019, Spotify filed a complaint against Apple with the European Commission, the EU body that deals with antitrust issues, claiming it was pressuring rival music services with its App Store fees. financial Times And bloomberg both reported this EU plans to fine Apple €500 million – Not enough to materially harm the $2.8 trillion company, but enough to signal that the Commission is no longer tolerating its business practices.
financial Times It also said that Apple could be prohibited from imposing restrictions on music services that would prevent it from users switching to cheaper payment options. The details are unclear right now, but such a decision could potentially give Spotify on iOS more room to operate within the EU – even if the EU’s new legal regime starts to open things up in other respects.
These reports come at an important time. Apple is being regulated as one of six “gatekeeper” tech companies that must comply with the EU’s Digital Markets Act. Under the DMA, Apple will be required to open up its tightly controlled app ecosystem to foster competition from smaller developers. Spotify, in particular, is planning for a future in which Apple can no longer charge a 30 percent fee on all digital transactions, which huge upside For Spotify subscription and audiobook businesses.
Apple introduced changes Last month to comply with the DMA, that includes support for alternative browser engines and app stores, as well as an alternative arrangement that includes lower app store fees and more flexibility for developers. But Apple has been accused Those new features have been made harder for third parties to access by developers and fellow gatekeepers (especially thanks to the new €0.50 fee per app install after the millionth install). Companies will still have to pay Apple to avoid the 30 percent tariff and use its payment system — possibly quite a bit. apple too Ended support for Progressive Web Apps On iPhones, that is being seen as a bad faith move.
If Apple’s changes are not deemed sufficient, the EU could fine the company up to 10 percent of its annual turnover. Given that it earned $383 billion last year, such a $540 million fine would seem like a slap on the wrist.
The outcome of this regulatory battle could have a major impact on the podcast sector. If apps from smaller audio companies are able to better attract iPhone users, we could see real innovation in this area. Plus, without the App Store tax, podcasters and podcast platforms may have more ways to make money beyond ads (which, as we’ve seen, aren’t enough to support the industry’s ambitions). Apple certainly isn’t moving quietly toward that future, but the EU’s decision to fine them at least shows that regulators there are serious about holding the company accountable.
[ad_2]
Thanks For Reading