‘Misleading’ and ‘Illegal’? Spotify and Epic Games Slam Apple’s Revised EU App Store Policy Plan

Spotify and Epic Games have criticized Apple’s revised plan for compliance with the EU’s Digital Markets Act (DMA), arguing that the tech giant’s proposed changes are “misleading”, “illegal” and ultimately fail to address the fundamental issues raised in the landmark legislation.

Apple on Thursday (August 8) announced a policy change in the European Union that would allow app developers to communicate with customers outside the App Store. Previously, Apple only allowed developers to use “link-outs,” meaning apps could include a link that redirected customers to a website where deals could be finalized.

The DMA, which aims to curb the dominance of tech platforms, requires companies like Apple to allow app developers to use alternative payment systems and promote their services outside of mobile app stores.

Apple said the new policy will allow game developers to promote and offer deals directly within their apps, even if those deals are available on platforms other than their own websites.

The move comes in response to allegations from the European Commission in June that the tech giant violated the DMA. The Commission fined Apple in March for 1.8 billion euros (2 billion US dollars) for abusing its dominant position in the distribution of music streaming applications via the App Store.

The EU then found that Apple had prohibited app developers from informing iOS users about alternative and cheaper music subscription services available outside the app, in violation of EU antitrust rules.

The change in Apple’s policy involves the introduction of new fees for app developers. Apple said in an update to its developer support page that apps in the App Store will be subject to a “reduced fee” of either 10% Or 17% for transactions involving digital goods and services.

Game developers will also have the option to use the App Store payment processing system for an additional fee. 3% fee. They can also choose to use a payment provider in their app or direct users to the website to process payments without incurring additional fees from Apple, the company explained.

In addition, for iOS apps with very high distribution through the App Store or alternative channels, developers will be charged fees 0.50€ ($0.55) for each first annual install in excess of one million. Apple estimates that under these terms, less than 1% developers will be subject to an underlying technology fee for their apps in the EU.

“demanding as much as needed 25% “By charging a fee for basic communications with users, Apple is once again blatantly disregarding the basic requirements of the Digital Markets Act (DMA).”

Spotify

In response to changes, Spotify he said TechCrunch that it is evaluating what it describes as Apple’s “intentionally misleading” proposal.

“At first glance, asking for as much as 25% “By charging for basic user communications, Apple is once again blatantly flouting the basic requirements of the Digital Markets Act (DMA). The European Commission has made clear that imposing recurring fees for basic elements like pricing and linking is unacceptable. We urge the Commission to speed up its investigation, implement daily fines, and enforce the DMA.”

“Apple continues its malicious compliance by imposing illegal new 15% “junk fees charged to users who migrate to competing stores and monitoring trade in those competing stores.”

Tim Sweeney, Epic Games

Epic gamesdeveloper Fortnitealso criticized Apple’s latest move, with CEO Tim Sweeney writing in the X post: “Apple continues its malicious compliance by imposing illegal new 15% “junk fees charged to users who migrate to competing stores and monitoring trade in those competing stores.”

Epic Games previously sued the tech giant for antitrust violations. Apple won that case last year, and the San Francisco-based U.S. Court of Appeals upheld a 2021 lower court ruling that largely sided with Apple in the case.

Meanwhile, a European Commission official said: Reuters Agency: “We will evaluate any changes Apple makes to its compliance measures, also taking into account any feedback from the market, especially from developers.”

In addition to the DMA, the EU has also passed a new Digital Services Act that aims to create a “safer digital space” for users. The DSA recently forced TikTok to permanently withdraw its loyalty programme from the EU following concerns expressed by EU regulators about its potential “addictive effect”.

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