Spotify, a notable Apple critic, unsurprisingly got here out swinging after Apple introduced the way it was complying with the EU’s new regulation, the Digital Markets Act, or DMA, calling Apple’s plan “extortion” and a “full and complete farce.” However on its This fall 2023 earnings name with buyers, Spotify CEO Daniel Ek took a extra muted tone regarding the new legislation, saying that there’s no actual draw back to its enterprise, from an investor standpoint, as firms can stay on their present phrases with Apple, and actually, there are potential “future upsides, that might be fairly vital.”

The streamer is certainly one of many vocal critics of the brand new legislation, becoming a member of others like Epic Video games, Mozilla, and Microsoft, who’ve raised issues about Apple’s implementation.

Although Apple is complying with the letter of the legislation — which forces Apple to open up its app ecosystem to new app shops and different fee mechanisms — it’s undoubtedly not complying with the spirit of the legislation, meant to foster larger competitors. As an alternative, Apple’s difficult new phrases contain a brand new Core Know-how Charge, that requires builders to pay €0.50 for every first annual set up per yr over a 1 million threshold, no matter their distribution channel. It can additionally take a fee on digital items and providers that happen on a developer’s web site inside 7 days of a person tapping by means of an in-app hyperlink for exterior purchases.

Ek instantly blasted Apple on social media after its phrases had been introduced, calling Apple’s answer a “masterclass in distortion” and warning that Spotify may “not afford these charges” if it needed “to be a worthwhile firm.”

To buyers on the quarterly earnings name, he reiterated this stance saying that Apple’s answer was a “farce” that “no sane developer” would need to select. Nevertheless, he downplayed any adverse influence Apple’s guidelines would have on Spotify’s enterprise or revenues.

“I do know that there initially was some questions on whether or not or not this might be a draw back for Spotify. I don’t assume that’s the case. So, you realize, we nonetheless have the flexibility to be on the previous phrases, and preserve going as we’re at present going,” Ek stated. In different phrases, nothing is altering for Spotify within the close to time period as the brand new legislation goes into impact.

As well as, the CEO advised some pluses may emerge from the brand new aggressive panorama, including that there are “future upsides” to the brand new guidelines that might be “fairly vital.” The corporate had hinted earlier than about its plans in a weblog put up, saying that the DMA would permit for issues like superfan golf equipment and various app shops, and would give creators the flexibility to obtain the Spotify for Artists app and Spotify for Podcasters app straight from its web site. (This was the primary time Spotify talked about superfan golf equipment, actually.)

As well as, the corporate had earlier stated that the loosened guidelines would imply it may talk to clients in its app about “new merchandise on the market, promotional campaigns, superfan golf equipment, and upcoming occasions, together with when objects like audiobooks are occurring sale,” the weblog put up learn.

Ek once more confirmed that’s the case, as he instructed buyers that fan golf equipment had been among the many issues Spotify may leverage the brand new guidelines to allow, which is one thing it couldn’t have executed earlier than as a result of doing so would have made all of Spotify unprofitable. Along with fan golf equipment, the CEO additionally advised that, given correct rules, Spotify may reap the benefits of its personal in-app purchases on issues like audiobook purchases or top-ups of hours — issues that might be “fairly significant” for Spotify’s revenues, on condition that it at present it has to share a 30% minimize of these with Apple.

“A few of these extra progressive issues that we wish to do, we’re at present restricted in doing on the iOS ecosystem,” he stated. “So clearly, my hope continues to be very a lot that the European Fee will take motion and permit this to occur,” he stated seemingly referring to each the March 7 implementation of the legislation and the likelihood that the Fee may drive Apple to revise its adjustments. He famous

that it could then be “far larger for the ecosystem, each for shoppers and creators alike.”