Spotify and Epic Games have criticized Apple’s revised compliance plan for the European Union’s Digital Markets Act (DMA), arguing that the tech giant’s proposed changes are “confusing,” “illegal,” and ultimately fail to address the core issues raised by the landmark legislation.
Apple on Thursday (August 8) announced a policy change in the European Union, allowing app developers to communicate with their customers outside of its App Store. Previously, Apple allowed developers to use “link-outs” only, meaning apps could include a link that redirected customers to a web page where contracts could be finalized.
The DMA, designed to curb the dominance of tech platforms, requires companies like Apple to allow app developers to use alternative payment systems and promote their services outside of mobile device app stores.
With the new policy, Apple said developers can now promote and offer deals directly within their apps, even if those deals are available on platforms other than their own websites.
The move is in response to charges from the European Commission in June, accusing the tech giant of breaching the DMA. The Commission in March fined Apple over €1.8 billion (USD $2 billion) for abusing its dominant position in the distribution of music streaming apps through its App Store.
The EU at the time found that Apple restricted app developers from informing iOS users about alternative and cheaper music subscription services available outside of the app, which breaches EU antitrust rules.
The policy change at Apple is accompanied by the introduction of new fees for app developers. Apple said in an update to its developer support page that apps in its App Store will be subject to a “reduced commission” of either 10% or 17% on transactions for digital goods and services.
Developers will also have the option to use the App Store’s payment processing system for an additional 3% fee. They can also opt to use a Payment Service Provider within their app or direct users to a website for payment processing without incurring any extra fees from Apple, explained the company.
Additionally, for very high-volume iOS apps distributed through the App Store or alternative channels, developers will be charged €0.50 ($0.55) for each first annual install exceeding a one-million threshold. Apple estimates that under these terms, less than 1% of developers will be subject to the Core Technology Fee on their EU apps.
“by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA).”
Spotify
In response to the changes, Spotify told TechCrunch that it is assessing what it describes as Apple’s “deliberately confusing” proposal.
“At first glance, by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA). The European Commission has made it clear that imposing recurring fees on basic elements like pricing and linking is unacceptable. We call on the Commission to expedite its investigation, implement daily fines and enforce the DMA.”
“Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores.”
Tim Sweeney, Epic Games
Epic Games, the developer of Fortnite, also slammed Apple’s latest move, with CEO Tim Sweeney writing in an X post: “Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores.”
Epic Games previously sued the tech giant for antitrust violations. Apple won that lawsuit last year, with the US Court of Appeals in San Francisco upholding a lower court’s ruling from 2021 that largely sided with Apple in the case.
Meanwhile, a European Commission official told Reuters: “We will assess Apple’s eventual changes to the compliance measures, also taking into account any feedback from the market, notably developers.”
In addition to the DMA, the EU also formed the new Digital Services Act, which seeks to create a “safer digital space” for users. The DSA recently forced TikTok to permanently remove its rewards program from the EU following concerns raised by the bloc’s regulators about its potential “addictive effect.”
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