Apple hides higher app store fee behind compliance with EU Digital Markets Act

Apple hides higher app store fee behind compliance with EU Digital Markets Act

Spotify is one of the impacted parties

Apple revealed several adjustments to align with EU regulations, though some argue they may not fully capture the intended spirit of the law. The company stated that EU app developers will now face lower commissions. However, Apple has introduced a new “core technology fee,” requiring developers to pay €0.50 for each first annual install beyond the 1 million threshold, regardless of how they distribute their apps. Additionally, a 3% payment processing fee will be charged when developers opt for Apple’s in-app payments instead of their own.

Spotify is unhappy with Apple’s approach to comply with the EU’s Digital Markets Act (DMA), which introduces options like sideloading apps and alternative app stores. In its response on Friday, Spotify criticised the new fees for developers as “extortion” and referred to Apple’s compliance plan as a “complete farce.” According to Spotify, this indicates that Apple believes the rules don’t apply to them.

Spotify CEO Daniel Ek expressed his thoughts on Apple’s DMA announcement in a company blog post and tweets. Following a review by Spotify’s legal team, Ek described the announcement as “at best vague and misleading” and considered it a “new low for the company.” Spotify, along with Epic, Match, and others, has long been a critic of the tech giant. They have advocated for increased regulation, including through the DMA.

Tim Sweeney, CEO of Epic Games, who previously sued Apple over antitrust issues, has criticised Apple’s plan, labelling it as “malicious compliance” and filled with “junk fees.” Now, Spotify is expressing a similar sentiment.

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