Apple Faces Criticism from Tech Giants over Compliance with EU Digital Markets Act
Several major technology companies have accused Apple of “unacceptable” behavior following its announcement of compliance with the new EU Digital Markets Act (DMA). The DMA aims to prevent monopolies on digital platforms, requiring tech companies to allow third parties to operate and process payments within their ecosystems. While Apple has stated that it will allow alternative options for non-App Store apps, it has also introduced a new fee for these applications.
New Fee Sparks Controversy
Apple’s compliance with the DMA comes with a catch – the company plans to charge non-App Store apps a fee of €0.50 for each first annual install per year over a 1 million threshold. This means that if an app reaches 2 million downloads, they would owe Apple an extra €500,000, with the same fee applying for every additional million downloads. This new policy has sparked backlash from tech industry giants and app developers alike.
Spotify CEO Criticizes Apple’s Decision
Spotify CEO Daniel Ek took to Twitter to express his dissatisfaction with Apple’s new fee structure, accusing the company of attempting to circumvent the rules of the DMA. According to Ek, Apple’s new plan is a “complete and total farce” and puts developers in an “untenable situation.” He argues that the new terms are essentially the same or worse than the previous rules, making it difficult for developers like Spotify to compete in the App Store.
Xbox President Joins the Criticism
Xbox President Sarah Bond also voiced her concerns about Apple’s decision, describing it as a step in the wrong direction. Bond believes that constructive conversations are necessary for progress towards open platforms and greater competition, and hopes that Apple will listen to feedback and work towards a more inclusive future for all.
European Games Developer Federation Highlights Unfairness
The European Games Developer Federation (EGDF) has pointed out the unfairness perpetuated by Apple’s new fee structure. According to the EGDF, the install fee makes it difficult for app developers to compete against Apple’s own services, creating a disincentive to use third-party marketplaces or payment systems. They argue that the new policy creates an artificial market access barrier for new third-party marketplaces and hinders fair competition for game developers.
Apple Yet to Address Criticisms
Despite the mounting criticism, Apple has not yet addressed the concerns raised by tech giants and game developers. It remains to be seen how the company will respond and whether any changes will be made to its newly-announced App Store policies.
Analyst comment
This news is negative for Apple. The introduction of a new fee for non-App Store apps has sparked controversy and criticism from major tech companies, app developers, and industry leaders. The criticism highlights the perceived unfairness and potential market barriers that this fee creates. Apple’s response will determine the impact on the market, but it may face increased pressure to revise its policies in order to address these concerns.
