January 27, 2024 – Spotify has strongly criticized Apple’s approach to comply with the European Union’s Digital Markets Act (DMA), labeling it “a complete and total farce.” Apple’s plan, set to be implemented in early March, allows developers to offer alternative app stores on iPhones and opt-out of using Apple’s in-app payment system, which historically charged commissions of up to 30%.
Under the new EU rules, developers are still required to pay a “core technology fee” of 50 euro cents per user account per year. Spotify, a major player in the music streaming industry, expressed dissatisfaction with Apple’s stance on abiding by the DMA. The company highlighted that it would face a 17% commission if it continues to stay in the App Store and offers its own in-app payment under the new terms.
In response to Spotify’s criticism, Apple emphasized that every developer has the choice to stay on the existing terms or adopt the new ones. Apple claimed that under the new terms, more than 99% of developers would either pay the same or less to Apple. The tech giant’s statement aimed to address concerns raised by Spotify and other developers regarding the financial implications of the new regulations.
The clash between Apple and Spotify underscores ongoing tensions in the digital marketplace, particularly regarding app store policies and fees. The EU’s DMA is designed to ensure fair competition and prevent anti-competitive practices in the digital sector. The development will likely fuel further discussions and negotiations between technology companies and regulatory authorities to strike a balance between innovation, market access, and consumer protection.
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