How Spotify's Decade-Long Battle With Apple Helped Reshape Global App Store Rules [Report]

Spotify's decade-long battle against Apple's App Store rules has helped reshape global tech regulation and put billions of dollars of the iPhone maker's profits at risk, according to a new report from The Wall Street Journal.

The account, adapted from an upcoming book by reporter Tim Higgins, details how Spotify's strategic push in Europe, combined with legal fights in the U.S., has eroded Apple's dominance over the mobile economy.

The conflict escalated after the 2015 launch of Apple Music. Spotify executives were frustrated that Apple could price its service at $9.99 per month while their own in-app subscription had to be listed at $12.99 to cover Apple's 30% commission. Court documents cited in the report reveal the App Store operates with margins exceeding 75%—far higher than hardware sales—making it one of Apple's most lucrative businesses.


In 2016, after hiring former Microsoft general counsel Horacio Gutierrez, Spotify submitted an app update that removed in-app subscriptions and added a button for users to have upgrade information emailed to them. Apple rejected the update, prompting a standoff that included tense meetings and a sharp exchange of letters. Gutierrez warned Apple that its actions raised "serious concerns under both U.S. and EU competition law," while Apple shot back that Spotify was asking for "special treatment."

Finding little traction with U.S. regulators, Spotify shifted its focus to the European Union, where it found a powerful ally in antitrust chief Margrethe Vestager. Spotify presented regulators with data from an A/B test it ran on Android, showing that Apple-like restrictions on steering users away from in-app purchases led to significantly fewer subscription upgrades.

This evidence became central to Spotify's 2019 complaint to the European Commission and ultimately contributed to the adoption of the Digital Markets Act (DMA), a sweeping law aimed at reining in Big Tech. In April, the EU fined Apple €500 million for violating the DMA's anti-steering rules.

The report also highlights the parallel U.S. fight led by Epic Games CEO Tim Sweeney. In April, a federal judge found Apple in "willful violation" of a 2021 injunction and banned the company from taking commissions on web-based purchases. Apple updated its App Store rules in response, and Spotify quickly released an updated U.S. app that now displays pricing and links to its website.


Together, Spotify's campaign in Europe and Epic's courtroom victories in the U.S. are dismantling Apple's once-untouchable App Store model, threatening one of its most profitable businesses — and ensuring the fight is far from over. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for more updates!