- Spotify shares were up more than 6% on Thursday after Apple announced that it would relax App Store rules that the music streamer previously said significantly harmed its business.
- The new rule will allow streaming businesses to have higher margins on subscriptions from iPhone users.
- "Apple's selective tweaks to its App Store rules are welcome, but they don't go far enough," Spotify chief legal officer Horacio Gutierrez tweeted on Thursday.
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Daniel Ek, chief executive officer and co-founder of Spotify AB, stands for a photograph after a news conference in Tokyo, Japan, on Thursday, Sept. 29, 2016.Akio Kon | Bloomberg | Getty Images
On Wednesday, Apple said that content subscription apps, like Spotify, can provide a link out to a website in their apps to sign up for a subscription, allowing the developer to bypass Apple's 15% to 30% cut of gross sales.
The new rule will allow streaming businesses to have higher margins on subscriptions from iPhone users and will enable these companies to more efficiently convert potential iPhone customers to subscribers without ceding billing and other support to Apple. Apple's App Store is the only way to install software on an iPhone and Apple reserves the right to reject apps over violations of its guidelines.