Spotify Criticizes Apple’s DMA Compliance Plan
On Friday, Spotify delivered a scathing critique of Apple’s recent approach to adhere to the European Union’s Digital Markets Act (DMA), dismissing it as “utterly nonsensical.” Starting in early March, developers gain newfound freedom to introduce alternative app stores on iPhones and forgo the use of Apple’s in-app payment system, known for its substantial commissions of up to 30%, aligning with the new EU regulations.
Despite the apparent flexibility in these changes, developers are still compelled to remit a “core technology fee” amounting to 50 euro cents per user account per year under Apple’s revamped EU regime. Spotify voiced its discontent, asserting that Apple’s proposed alternative is an undesirable deviation from the current status quo, underscoring Apple’s initial reluctance to conform to the DMA.
Should Spotify choose to remain in the App Store while implementing its own in-app payment system under the new terms, it would be subject to a 17% commission. In response, Apple defended its stance, affirming that developers retain the autonomy to continue operating under the existing terms. Apple contends that under the revised terms, over 99% of developers would either pay the same or experience reduced fees.
The industry chief of the European Union, in an exclusive statement to Reuters on Friday, issued a warning to Apple, suggesting that the company might face severe consequences if the adjustments to its App Store fail to align with the forthcoming regulatory requirements.
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