Music streaming giant Spotify has expressed dissatisfaction with Apple’s proposed plan to adhere to the European Union’s Digital Markets Act (DMA), labeling it “a complete and total farce.” Under the new rules, set to take effect from early March, developers will have the option to offer alternative app stores on iPhones and can opt out of using Apple’s in-app payment system, which typically imposes commissions of up to 30%.
However, Apple’s compliance strategy includes a “core technology fee” of 50 euro cents per user account annually for developers operating under its new EU regime. Spotify, in response to the plan, asserted that Apple has presented an undesirable alternative to the existing arrangement, emphasizing Apple’s previous disapproval of abiding by the DMA.
According to Spotify, if it chooses to remain in the App Store and implements its own in-app payment system under the new terms, it would be subject to a 17% commission. Apple countered this claim, stating in an email to Reuters that developers have the option to maintain the current terms, and under the proposed changes, more than 99% of developers would experience the same or reduced payment obligations to Apple.
The European Union has signaled that Apple could face significant consequences if the modifications to its App Store do not align with the upcoming DMA regulations. The bloc’s industry chief exclusively conveyed to Reuters on Friday that strong actions would be taken if Apple’s adjustments fail to meet the incoming regulatory standards.
