Saturday, 27 January 2024, Bengaluru, India
Add Spotify to the list of people dissatisfied with Apple’s decision to abide by the EU’s Digital Markets Act (DMA), which lays the groundwork for sideloading apps, alternate app stores, browser preference, etc. The streaming music provider responded to Apple’s new DMA regulations on Friday, labeling the additional developer costs as “extortion” and Apple’s compliance plan as “a complete and total farce,” indicating the tech giant’s belief that the regulations don’t apply to them.
(Image Source: https://robots.net/)
Apple made several announcements earlier this week that adhere to EU law’s letter, if not the spirit. The business announced lower fees for app developers in the EU. Still, it also unveiled a new “core technology fee” that charges developers €0.50 for every annual install over a threshold of one million, irrespective of the distribution method. When developers use Apple’s in-app payments rather than their own, it will impose a 3% payment processing fee.
Spotify effectively states the same thing as Epic Games CEO Tim Sweeney, whose company sued Apple over antitrust concerns. Sweeney had previously denounced Apple’s proposal, calling it a “malicious compliance” case consisting of “junk fees.”
The streamer has long criticized the tech giant and advocated for further regulation, mainly through the DMA and Epic, Match, and others.
Following a review by Spotify’s lawyers, CEO Daniel Ek offered his thoughts on Apple’s DMA announcement in a blog post and a series of messages on X (previously Twitter). He characterizes the news as a “new low for the company” and “at best vague and misleading.”
According to Ek, Apple’s answer is a “masterclass in distortion” because it allows app developers to continue with the current conditions or convert to a “convoluted new model” that could have higher fees despite initially appearing appealing. He notes that starting this year, every app with tens or hundreds of millions of users in the EU would be subject to a new fee on each new download and update. This would affect not only Spotify but several larger apps, including WhatsApp, Duolingo, X, and Pinterest.
The system aims to prevent programs using alternate distribution methods like sideloading or alternate app stores. But without the popular apps accessible through these alternate routes, users won’t find them as appealing. According to Ek, Apple’s App Store will continue to be powerful.
Furthermore, Ek notes that Spotify is compelled to maintain the current structure due to the higher fees, giving it no other option.
He ends by putting out a challenge to lawmakers, asking them to “not let their work over the years all be for nothing” and to acknowledge what Apple is doing and stick to it. Everyone is observing,” Ek writes.
Ek’s letter comes after criticism from the Coalition for App Fairness (CAF). This lobbying group includes dozens of smaller developers, including Epic, Spotify, Tile, Basecamp, Match, and Deezer. The group said on Thursday that Apple’s new charges for direct downloads and payments they do not handle are illegal and do not promote competition or equity in the digital market.
“Apple’s proposal obliges developers to select between two unlawful and anticompetitive options,” stated CAF Executive Director Rick VanMeter. “Either adopt a new, complicated set of terms detrimental to developers and consumers or continue with the awful status quo. This is another attempt to get around regulations; similar ones have also been observed in South Korea, the Netherlands, and the United States. Apple’s “plan” is an egregious disrespect to the European Commission and the millions of customers they represent throughout Europe; the Commission should reject it.
(Information Source: Techcrunch.com)
