Spotify has slammed Apple’s newly announced plan to comply with the European Union’s Digital Markets Act (DMA), calling it a “complete and total farce.”
The music streaming giant argues that Apple’s alternative in-app payment system does little to promote fair competition.
The DMA, which comes into effect in early March, requires Apple to allow alternative app stores and iPhone payment systems.
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- Spotify says Apple’s EU regulation compliance plan does little to promote fair competition.
- Developers must still pay Apple commissions and fees under the new terms.
- Spotify believes Apple formulated an “undesirable alternative” to avoid meaningfully changing its App Store practices.
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Spotify Calls Apple’s EU Regulation Compliance Plan a “Complete Farce”
This aims to increase competition and reduce Apple’s commissions by up to 30% through its proprietary in-app purchase system.
However, Spotify claims that even with the alternative payment option, it would still have to pay Apple a 17% commission to remain in the App Store.
Developers also must pay a “core technology fee” of 50 euro cents per user account annually.
“Apple has clearly said they didn’t like abiding by the DMA. So they’ve formulated an undesirable alternative to the status quo,” said Spotify.
Apple contends that over 99% of developers would pay the same or less commission under the new terms.
It claims developers can choose to stay on existing terms if they wish.
The tech giant faces potential enforcement action if its App Store changes are deemed non-compliant with the DMA.
The EU’s industry chief stated that strong action would occur if the regulations are not properly met.
This brewing battle highlights the ongoing antitrust scrutiny facing Apple’s App Store practices.
Spotify and other developers have alleged anti-competitive behavior, given Apple’s control over app distribution on iPhones.
The DMA represents a major attempt to loosen Apple’s grip and give developers more options.
However, Spotify believes the alternative payment system does not go far enough in promoting fair competition.
This dispute will likely continue as regulators monitor Apple’s compliance with the new rules.
For now, Spotify sees Apple’s plan as an inadequate concession designed to maintain the status quo as much as possible.
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