Spotify (SPOT.N) has strongly criticized Apple’s (AAPL.O) new plan to comply with the European Union’s Digital Markets Act (DMA), labeling it as “a complete and total farce.” Under the DMA’s new rules set to take effect in early March, developers will have the option to offer alternative app stores on iPhones and bypass Apple’s in-app payment system, which currently imposes commissions of up to 30%.
Despite this apparent concession, developers will still be mandated to pay a “core technology fee” of 50 euro cents per user account per year under Apple’s revised EU framework.
Expressing dissatisfaction, Spotify remarked that Apple’s response to the DMA reflects its longstanding reluctance to comply with the regulations. The music streaming giant highlighted that, under the new terms, it would face a 17% commission if it chooses to remain in the App Store and utilize its own in-app payment system.
In defense of its stance, Apple asserted that developers have the option to maintain existing terms or transition to the new ones, emphasizing that over 99% of developers would experience no change or a reduction in fees.
However, the European Union’s industry chief cautioned that Apple could face significant repercussions if the modifications to its App Store fail to align with the forthcoming regulations. This statement underscores the regulatory scrutiny and potential consequences awaiting tech giants for their practices in the EU market.
