Spotify and Epic Games have criticised Apple’s revised plan to comply with the European Union’s Digital Markets Act (DMA), arguing that the changes proposed by the tech giant are “confusing” and “illegal” and ultimately fail to address the core issues raised by the landmark legislation.
Apple on Thursday (August 8), a policy change was announced in the European Union that will allow app developers to communicate with their customers outside of the App Store. Previously, Apple only allowed developers to use “link-outs,” meaning apps could contain a link that directed customers to a web page where contracts could be concluded.
Designed to curb the dominance of technology platforms, the DMA requires companies like Apple to allow app developers to use alternative payment systems and promote their services outside of mobile app stores.
According to Apple, the new policy allows developers to now promote and offer offers directly in their apps, even if those offers are available on platforms other than their own websites.
The move is a response to allegations made by the European Commission in June that the tech giant had breached the DMA. The Commission fined Apple in March for 1.8 billion euros (2 billion US dollars) for abusing its dominant position in the distribution of music streaming apps through its App Store.
The EU found at the time that Apple prevented app developers from informing iOS users about alternative and cheaper music subscription services available outside the app, and that this violated EU antitrust rules.
Apple’s policy change comes with the introduction of new fees for app developers. Apple announced in an update to its developer support page that apps in its App Store will be subject to a “reduced commission” that will be either 10% or 17% in transactions for digital goods and services.
Developers also have the option to use the App Store’s payment processing system for additional 3% fee. They can also choose to use a payment processor in their app or direct users to a website for payment processing without incurring additional fees from Apple, the company explained.
In addition, developers are charged fees for very high-volume iOS apps distributed through the App Store or alternative channels. 0,50 € ($0.55) for each first annual installation that exceeds one million times the limit. Apple estimates that under these conditions, less than 1% The developers are subject to the Core Technology Fee for their EU apps.
“by demanding as much as 25% fee for basic communication with users, Apple once again blatantly disregards the basic requirements of the Digital Markets Act (DMA).”
Spotify
In response to the changes Spotify told TechCrunch that it is reviewing what it considers to be Apple’s “intentionally confusing” proposal.
“At first glance, by demanding as much as 25% “By charging for basic communications with users, Apple once again blatantly disregards the basic requirements of the Digital Markets Act (DMA). The European Commission has made it clear that charging recurring fees for basic elements such as pricing and linking is unacceptable. We call on the Commission to speed up its investigation, impose daily fines and enforce the DMA.”
“Apple continues its malicious compliance by releasing an illegal new 15% Junk fees for users who migrate to competing stores and monitoring trading in those competing stores.”
Tim Sweeney, Epic Games
Epic Gamesthe developer of Fortnitealso criticized Apple’s recent move, with CEO Tim Sweeney In an X-post he wrote: “Apple continues its malicious compliance by releasing an illegal new 15% Junk fees for users who migrate to competing stores and monitoring trading in those competing stores.”
Epic Games had previously sued the tech giant for antitrust violations. Apple won that lawsuit last year, with the U.S. Court of Appeals in San Francisco upholding a 2021 lower court ruling that largely sided with Apple in the case.
Meanwhile, a European Commission official said Reuters: “We will review Apple’s possible changes to compliance measures and take into account all feedback from the market, especially from developers.”
In addition to the DMA, the EU has also adopted the new Digital Services Act, which aims to create a “safer digital space” for users. The DSA recently TikTok to permanently remove its bonus program from the EU after the bloc’s regulators raised concerns about a possible “addictive effect.”
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