Spotify Breaks Apple's Walled Garden: US Users Can Now Buy Audiobooks Directly in iOS App

In a significant development for the digital content landscape and the ongoing saga between app developers and platform gatekeepers, Spotify has announced that Apple has approved a crucial update to its iOS application. This update, available to iPhone users in the United States, marks a pivotal moment: users can now purchase individual audiobooks and additional listening hours directly within the Spotify app, bypassing Apple's long-standing requirement for in-app purchases to go through its own payment system, which typically involves a substantial commission.

The change is a direct consequence of a recent U.S. court ruling that challenged Apple's restrictive App Store policies, specifically prohibiting developers from directing users to alternative payment methods or even informing them about pricing options outside the App Store. For years, this policy has been a major point of contention, leading to high-profile legal battles and regulatory scrutiny worldwide.

A Long-Awaited Shift in User Experience

Prior to this update, the process for buying audiobooks on Spotify for iPhone users was cumbersome. Due to Apple's rules, Spotify was forced to remove the ability to purchase audiobooks directly within the iOS app back in 2022. This meant users interested in buying an audiobook they discovered on Spotify had to leave the app, navigate to Spotify's website, complete the purchase there, and then return to the app to access their content. This multi-step process created friction, potentially deterring users and limiting audiobook sales within the Spotify ecosystem.

The newly approved update streamlines this experience dramatically. Users can now browse audiobooks within the app, see their prices, and complete the purchase with just a few taps, much like buying digital content on other platforms that aren't subject to such stringent third-party payment restrictions. Spotify highlighted the positive impact on accessibility, stating, “This change lowers the barriers for more users to embrace their first — or tenth — audiobook, while allowing publishers and authors to reach fans and access new audiences seamlessly.”

Beyond individual audiobook purchases, the update also addresses the process for buying additional listening time. Spotify's audiobook model initially provided users with a set number of listening hours per month, with the option to purchase “top-ups” if they exceeded that limit. Previously, these top-ups also had to be purchased via the web. Now, users can buy these additional hours — priced at $13 for 10 hours — directly within the app, further enhancing convenience.

The Court Ruling That Paved the Way

This significant policy shift by Apple is not a voluntary concession but rather a direct response to legal pressure. The specific ruling referenced is a result of the protracted legal battle initiated by Epic Games, the developer of Fortnite, against Apple. While the initial ruling in the Epic Games v. Apple case was mixed, one key injunction ordered Apple to allow developers to include “buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to IAP [in-app purchase].”

Apple fought this injunction for years, appealing the decision up to the Supreme Court. However, the Supreme Court ultimately declined to hear Apple's appeal in January 2024, effectively upholding the injunction. This forced Apple to begin implementing changes to its App Store policies in the U.S. to comply with the court order. The approval of Spotify's update allowing direct audiobook purchases is one of the most prominent examples of this compliance in action.

It's important to note that this ruling specifically applies to developers of “reader” apps — apps that provide digital content such as books, magazines, newspapers, music, or video as their primary functionality. While the Epic Games lawsuit was broader, the injunction that was upheld primarily benefited this category of apps, allowing them to link out to external purchase methods. Spotify, as a provider of digital audio content (music, podcasts, and audiobooks), falls squarely within this category.

Implications for Spotify's Audiobook Ambitions

Spotify first ventured into the audiobook market in 2020, initially through a partnership with Storytel. In 2022, it significantly ramped up its efforts by acquiring Findaway, a major audiobook distributor. This acquisition signaled Spotify's serious intent to become a major player in the audiobook space, challenging established players like Audible (an Amazon company).

However, Apple's App Store policies presented a significant hurdle. The inability to sell audiobooks directly within the iOS app — the platform used by a large segment of its premium user base — limited Spotify's ability to effectively market and monetize its growing audiobook catalog. The cumbersome web-based purchase flow was a poor user experience compared to the seamless in-app purchasing offered by competitors like Audible on iOS.

With the approval of this update, Spotify can now offer a much more integrated and user-friendly audiobook purchasing experience on iPhones. This is crucial for several reasons:

• Increased Sales Potential: Removing friction from the purchase process is likely to lead to higher conversion rates for audiobook sales.
• Enhanced User Engagement: A seamless experience keeps users within the Spotify ecosystem, encouraging them to explore and purchase more content.
• Competitive Positioning: Spotify can now compete more directly and effectively with Audible and other audiobook platforms on the iOS platform.
• Direct Revenue Stream: Spotify can capture the full revenue from these in-app audiobook sales (minus any payment processing fees, but without Apple's commission), which is vital for the profitability of its audiobook business.

This move aligns with Spotify's broader strategy to evolve beyond just music streaming into a comprehensive audio platform encompassing music, podcasts, and audiobooks. Making audiobooks easily accessible and purchasable within the core app is essential for this strategy's success.

The Shifting Landscape of App Store Economics

Apple's App Store has long been a highly profitable engine for the company, largely due to the 15-30% commission it charges on in-app purchases and subscriptions. This “Apple tax” has been a source of significant tension with developers, particularly those whose businesses rely heavily on digital content sales or subscriptions.

The Epic Games ruling, and Apple's subsequent compliance allowing external links for reader apps in the U.S., represents a crack in this previously rigid system. While developers still cannot use alternative in-app payment systems without paying a commission (albeit a reduced one if they use external links), the ability to direct users to the web for purchases is a meaningful change. This allows developers to potentially avoid Apple's commission entirely on those transactions, though it still requires extra steps for the user compared to a native in-app payment.

For Spotify, the ability to sell audiobooks directly within the app interface, even if the payment processing itself might still involve some complexities depending on the exact implementation and Apple's compliance model (Apple has proposed fees even on external purchases originating from the app, which is another point of contention), is a major step forward for user experience and sales potential compared to the previous web-only requirement.

This development also occurs within a global context of increasing regulatory pressure on dominant app stores. The European Union's Digital Markets Act (DMA), for example, imposes stricter requirements on “gatekeepers” like Apple, mandating greater interoperability and allowing developers more freedom regarding payment systems and app distribution. While the U.S. court ruling is specific to the U.S. market and reader apps, it contributes to a broader trend of challenging the control exerted by platform owners over their ecosystems.

What This Means for Consumers

For the average iPhone user in the U.S. who uses Spotify, this update is unequivocally positive. The primary benefit is convenience. Discovering an audiobook on Spotify and being able to buy it instantly without leaving the app removes a significant barrier. This seamless experience makes it easier and more intuitive to explore and purchase audio content beyond music and podcasts.

Furthermore, the ability to purchase listening hour top-ups directly in the app simplifies the process for heavy audiobook listeners on Spotify's platform. Instead of interrupting their listening flow to go to a website, they can quickly add more hours as needed.

While the immediate impact on audiobook prices isn't guaranteed, increased competition and the removal of Apple's commission on direct web purchases (or potentially reduced fees depending on Apple's final compliance model) could, in theory, lead to more competitive pricing or allow platforms like Spotify to invest more in content and features. However, pricing strategies are complex and depend on many factors beyond platform fees.

The Road Ahead: Continued Evolution and Challenges

The approval of this update is a significant victory for Spotify and other developers of reader apps in the U.S. It demonstrates the tangible impact of legal challenges and regulatory pressure on the practices of dominant tech companies.

However, the landscape is still evolving. Apple's implementation of the court order, including proposed fees on transactions initiated within the app but completed externally, remains a subject of debate and potential future legal or regulatory challenges. Developers continue to push for greater freedom and fairer terms on app stores.

For Spotify, this update is a critical step in solidifying its position in the growing audiobook market. A better user experience on its largest platform (iOS) is essential for attracting and retaining audiobook listeners. It allows Spotify to leverage its existing user base and platform features to cross-promote audiobooks alongside music and podcasts more effectively.

This development underscores the dynamic nature of the digital distribution ecosystem. As courts and regulators around the world scrutinize the power of app store gatekeepers, we are likely to see further changes that could reshape how digital content is bought and sold on mobile devices, ultimately aiming to create a more open and competitive environment for both developers and consumers.

The ability to buy audiobooks directly within the Spotify iOS app is more than just a feature update; it's a symbol of a changing era in the relationship between major platforms and the developers who rely on them, driven by persistent legal challenges and the pursuit of a more open digital marketplace.