On Thursday, Spotify Technologies (NYSE:SPOT) said that it had submitted an updated version of its app to Apple Inc. (NASDAQ:AAPL) that includes an external link for U.S. users to purchase subscriptions outside the App Store.
What Happened: The move follows a ruling by U.S. District Judge Yvonne Gonzalez Rogers, who found that Apple had failed to comply with her 2021 injunction in the Epic Games antitrust lawsuit.
In an 80-page decision issued Wednesday, Judge Rogers said Apple’s attempts to introduce new fees on off-app purchases violated the spirit of her original order.
Apple responded by stating it strongly disagrees with the ruling but would comply while it appeals the decision.
“The fact that we haven’t been able to deliver these basic services, which were permitted by the judge’s order four years ago, is absurd,” the company said in a blog post.
Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox.
Why It’s Important: After the court’s ruling, Epic Games CEO Tim Sweeney also proposed ending all ongoing litigation if Apple expands its compliance.
Meeting Epic’s conditions would require Apple to drop its global commissions on purchases made outside the App Store and lift restrictions on linking to external payment platforms—changes that could deal a major blow to Apple’s lucrative services revenue.
Price Action: On Thursday, Apple stock gained 0.39% during regular trading before dropping 3.78% in after-hours trading, closing at $205.25, per Benzinga Pro data. On the same day, Spotify ended 1.9% lower at $602.26 in the regular trading and fell 0.72% in the after-hours session.
According to Benzinga Edge’s Stock Rankings, Apple holds a growth score of 44.64% and a momentum score of 44.65%. Click here to see how it stacks up against other leading tech stocks.
Photo Courtesy: Shutterstock.com
Check out more of Benzinga’s Consumer Tech coverage by following this link.
Read Next:
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
