AppleThe updated Digital Markets Act (DMA) Compliance plan for the European Union has come under criticism from major technology companies Spotify And Epic GamesThe iPhone maker’s revised rules, announced on August 8, were described by both companies as “unacceptable,” “illegal” and “intentionally confusing.”
The new fee structure, which loosens restrictions on external links while introducing additional fees, is facing strong opposition. Spotify expressed its disapproval in a statement to TechCrunch:
“We are currently reviewing Apple’s deliberately confusing proposal. By charging a fee of up to 25% for basic communications with users, Apple is, at first glance, once again blatantly disregarding the basic requirements of the Digital Markets Act (DMA).”
CEO of Epic Games Tim Sweeney was equally critical and expressed his concerns about X:
“In the European Union, where the new DMA law opens up competition between app stores, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users who switch to competing stores and by monitoring commerce in those competing stores.”
Apple’s new plan allows developer Link-Outs into their apps without accepting Apple’s newer terms and conditions or paying the Core Technology Fee.
Developers now have more flexibility in communicating external offers, including promoting offers from other apps and marketplaces, and can use actionable links without mandated templates. However, the revised plan introduces two new fees: an “initial acquisition fee” and a “store service fee” that apply to developers who link to their sites for purchases even if they don’t accept Apple’s full DMA terms.
The 5% “Initial Purchase Fee” applies to sales made by new app users on any platform during the first 12 months after downloading a Link-Out-eligible app. The 10% (or 5% for small businesses) “Store Services Fee” applies to sales made on any platform during a fixed 12-month period from each app installation or update.
Apple claims that these changes will result in lower rates for developers using link-outs, especially for existing users.
However, Spotify demanded the European Commission to take action and said: “We call on the Commission to speed up its investigation, impose daily fines and enforce the DMA.” The Music streaming giant argues that Apple’s new fees for basic communications with users are unacceptable in light of the DMA’s requirements.
Sweeney also criticized the economic impact of Apple’s new terms and conditions, claiming they would “make it completely uneconomical for developers to distribute their apps through both the Apple App Store and competing iOS app stores.”
Despite the criticism, Epic Games remains committed to launching its own app store on iOS in the EU. Sweeney said: “We remain on track to launch the Epic Games Store on iOS in the European Union soon. On our own if necessary.”
The new fee structure, which loosens restrictions on external links while introducing additional fees, is facing strong opposition. Spotify expressed its disapproval in a statement to TechCrunch:
“We are currently reviewing Apple’s deliberately confusing proposal. By charging a fee of up to 25% for basic communications with users, Apple is, at first glance, once again blatantly disregarding the basic requirements of the Digital Markets Act (DMA).”
CEO of Epic Games Tim Sweeney was equally critical and expressed his concerns about X:
“In the European Union, where the new DMA law opens up competition between app stores, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users who switch to competing stores and by monitoring commerce in those competing stores.”
Apple’s new plan allows developer Link-Outs into their apps without accepting Apple’s newer terms and conditions or paying the Core Technology Fee.
Developers now have more flexibility in communicating external offers, including promoting offers from other apps and marketplaces, and can use actionable links without mandated templates. However, the revised plan introduces two new fees: an “initial acquisition fee” and a “store service fee” that apply to developers who link to their sites for purchases even if they don’t accept Apple’s full DMA terms.
The 5% “Initial Purchase Fee” applies to sales made by new app users on any platform during the first 12 months after downloading a Link-Out-eligible app. The 10% (or 5% for small businesses) “Store Services Fee” applies to sales made on any platform during a fixed 12-month period from each app installation or update.
Apple claims that these changes will result in lower rates for developers using link-outs, especially for existing users.
However, Spotify demanded the European Commission to take action and said: “We call on the Commission to speed up its investigation, impose daily fines and enforce the DMA.” The Music streaming giant argues that Apple’s new fees for basic communications with users are unacceptable in light of the DMA’s requirements.
Sweeney also criticized the economic impact of Apple’s new terms and conditions, claiming they would “make it completely uneconomical for developers to distribute their apps through both the Apple App Store and competing iOS app stores.”
Despite the criticism, Epic Games remains committed to launching its own app store on iOS in the EU. Sweeney said: “We remain on track to launch the Epic Games Store on iOS in the European Union soon. On our own if necessary.”
