Apple’s Revised Compliance Plan for the European Union’s Digital Markets Act (DMA) Sparks Criticism from Spotify and Epic Games
In a recent development, Apple has revised its compliance plan for the European Union’s Digital Markets Act (DMA), sparking criticism from music streaming service Spotify and game developer Epic Games. The DMA is a regulation aimed at promoting competition in digital markets, particularly in the context of app stores.
Spotify Condemns Apple’s Revised Plan
Spotify was quick to condemn Apple’s revised plan, calling it "unacceptable" and stating that Apple had once again disregarded the fundamental requirements of the DMA. In a statement shared with TechCrunch, Spotify said: "We are currently assessing Apple’s deliberately confusing proposal… At first glance, by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA)."
Spotify’s criticism is centered around the fact that Apple’s revised plan introduces new fees on top of the existing Core Technology Fee. The company has expressed concerns about the impact these fees will have on developers and consumers.
Epic Games Criticizes Apple’s "Malicious Compliance"
Epic Games, a long-time critic of Apple’s app store policies, has also come out against the revised plan. CEO Tim Sweeney tweeted: "In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitoring commerce on these competing stores."
Sweeney’s criticism highlights the potential for Apple to abuse its market position by imposing unfair fees on developers. The European Commission has already determined that Apple’s first attempt at DMA compliance was inadequate, and it is now investigating the revised plan.
The Revised Plan: What Changes Were Made?
Apple’s revised plan introduces two new fees in addition to the Core Technology Fee: an "Initial Acquisition Fee" and a "Store Services Fee". The Initial Acquisition Fee is a commission of sorts for connecting users with the app through the App Store, applying during the first 12 months. The Store Services Fee helps fund Apple’s App Store operations and is charged on a 12-month fixed basis.
Developers who accept Apple’s new DMA terms will still have to pay these fees, in addition to any existing fees they may be subject to. This has led some to question whether Apple’s revised plan truly addresses the concerns of developers and consumers.
The European Union’s Stance on the Revised Plan
The European Commission is currently investigating Apple’s revised plan, and it remains to be seen whether the EU will accept these changes. Spotify has called on the Commission to expedite its investigation and implement daily fines if necessary.
In a statement, Spotify said: "We call on the Commission to expedite its investigation, implement daily fines and enforce the DMA." This suggests that Spotify is willing to take a strong stance against Apple’s revised plan if it is deemed unacceptable.
The Implications of Apple’s Revised Plan
Apple’s revised plan has significant implications for developers and consumers. If implemented, these new fees could lead to increased costs for developers and potentially drive them out of the market.
Furthermore, the introduction of new fees raises concerns about Apple’s ability to abuse its market position. The European Commission has made it clear that imposing recurring fees on basic elements like pricing and linking is unacceptable under the DMA.
What Does This Mean for Developers?
Developers are likely to be affected by Apple’s revised plan, particularly if they accept Apple’s new DMA terms. The introduction of new fees could lead to increased costs and potentially drive them out of the market.
Moreover, the revised plan raises concerns about Apple’s ability to abuse its market position. Developers may need to carefully consider whether accepting these new fees aligns with their business goals and objectives.
Conclusion
Apple’s revised compliance plan for the European Union’s Digital Markets Act (DMA) has sparked criticism from Spotify and Epic Games. The introduction of new fees on top of the existing Core Technology Fee raises concerns about Apple’s ability to abuse its market position.
The European Commission is currently investigating Apple’s revised plan, and it remains to be seen whether the EU will accept these changes. Developers and consumers alike should closely monitor this situation as it unfolds.
Key Takeaways
- Apple has revised its compliance plan for the European Union’s Digital Markets Act (DMA).
- The revised plan introduces new fees on top of the existing Core Technology Fee.
- Spotify and Epic Games have criticized Apple’s revised plan, citing concerns about unfair fees and market abuse.
- The European Commission is investigating Apple’s revised plan, and it remains to be seen whether the EU will accept these changes.
