Spotify and Epic Games are among Apple critics unhappy with the iPhone maker’s newly revised compliance plan for the European Union’s Digital Markets Act (DMA). Shortly after Apple announced the updated version on Tuesday, which included relaxed restrictions as well as the introduction of two more fees, Spotify shared a statement with TechCrunch calling the plan “unacceptable” and claiming Apple is once again disregarding “the basic requirements” of the DMA. Epic Games CEO Tim Sweeney, meanwhile, called the revisions another case of “malicious compliance” related to “junk fees.”
In the European Union where the new DMA law opens up app store competition, 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.https://t.co/YUYwsnrh32 pic.twitter.com/xAWGkOWPrH
— Tim Sweeney (@TimSweeneyEpic) August 8, 2024
Having already determined that Apple’s first attempt to comply with the DMA rules had failed, the European Commission investigated the new fee structure proposed under Apple’s DMA rules, which included a new core technology fee for the privilege of using Apple’s technology to build mobile apps.
Under Apple’s new policy proposed today, developers who want to link to their websites from their iOS apps will no longer have to accept Apple’s DMA rules to do so. However, those developers will still have to pay Apple, even if they no longer have to pay the Core Technology Fee that comes with Apple’s new DMA rules. Instead, Apple has introduced two new fees – an “Initial Acquisition Fee” and another “Store Services Fee.” The former is a sort of commission for connecting users to the app through the App Store that accrues during the first 12 months, while the latter helps fund Apple’s App Store operations. It is charged on a fixed 12-month basis, meaning it applies to those users who continue to make new purchases of digital goods and services through the app.
Both fees will also be levied on developers who accept Apple’s new DMA terms, and are new costs in addition to the Core Technology Fees for app installs.
The changes are confusing – so much so that even Spotify says it is not quite sure what to do with them.
Nevertheless, the company condemned the changes based on its current understanding of how this new policy works:
We are currently reviewing Apple’s intentionally confusing proposal,” the company said in a statement. “On its face, Apple once again blatantly disregards the basic requirements of the Digital Markets Act (DMA) by charging a fee of up to 25% for basic communications with users. 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.
Fortnite maker Epic Games, an Apple critic who sued the app stores for antitrust violations, also called the new changes illegal.
CEO Tim Sweeney wrote in a post on 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 on those competing stores,” he said.
It remains to be seen whether the EU will accept the changes proposed by Apple.
