Apple has recently updated its plan to comply with the European Union’s Digital Markets Act (DMA), a move designed to increase competition within app stores. However, the revisions have been met with criticism from major companies such as Spotify and Epic Games. These critics argue that Apple’s adjustments are not only unclear but also potentially in violation of the DMA’s stipulations.
Spotify, the streaming music giant, swiftly responded to Apple’s announcement, describing the new plan as “unacceptable,” indicating that the tech behemoth continues to avoid adhering to the “fundamental requirements” of the DMA. Spotify’s leaders have expressed concern that the revisions may involve excessive fees for essential communication with app users, which they believe contradicts the DMA’s principles. The company has urged for a more expedited investigation by the European Commission and called for the enforcement of the DMA through applicable penalties.
Similarly, Epic Games, known for its popular game Fortnite and previous legal confrontations with Apple over antitrust issues, has been vocal in its disapproval. Tim Sweeney, the CEO of Epic Games, has referred to Apple’s new fees as “malicious compliance,” labeling them as “illegal” and equating them to a “junk fee.” According to Sweeney, this 15% fee imposed on users who switch to competing stores, as well as the monitoring of commerce on these platforms, is in direct opposition to the intended competition the DMA seeks to promote.
Apple’s revised plan includes the introduction of two additional fees: an “Initial Acquisition Fee” and a “Store Services Fee.” The Initial Acquisition Fee seems to be a commission for connecting users to apps through the App Store for the first year, while the Store Services Fee is intended to support Apple’s App Store operations on an ongoing twelve-month term. These fees are coupled with existing Core Technology Fees for app installations, which together can stack up to significant amounts.
The new fees are not only for developers who choose not to comply with Apple’s DMA rules but also for those who do, integrating additional charges on top of the Core Technology Fees. This complex and multitiered fee structure has been the source of confusion and frustration for developers and industry stakeholders.
Both Spotify and Epic Games have made their position clear, stating they believe the tech giant is not complying in good faith with the DMA’s terms and is creating barriers rather than fostering competition.
As the European Commission examines Apple’s proposal, the tech community is waiting to see whether the changes will be deemed sufficient under the new law. With the increasing scrutiny and possible legal challenges from industry heavyweights, the situation highlights the ongoing tension between major app developers and the platform holders that control access to millions of consumers.
