Apple has released a new compliance plan for the European Union’s Digital Markets Act (DMA) and they have angered both Spotify and Fortnite creators Epic Games in the process.
Spotify and Epic Games are battling against Apple due to their iPhone restrictions. Recently, a new compliance plan was released by Apple for the European Union’s Digital Markets Act (DMA). But, not long after the company updated the plan, Spotify released a statement.
It’s said that within the plan, Apple have announced restrictions being relaxed in certain areas, however, they have also added two more fees. Spotify have spoken out to suggest Apple are disregarding the “fundamental requirements” of the DMA.
Epic Games CEO, Tim Sweeney, has also spoken out, saying the revisions are another case of “malicious compliance” that involve “junk fees”. The European Commission has stepped in to say Apple’s attempts have failed, so Apple will need to revise their compliance.
The DMA will be investigating the new fees, one being a Core Technology Fee which is something Apple have put into place to charge people for building mobile apps and using Apple technology to do so. This will affect all independent developers.
Apple’s new rule will mean developers that want to link their websites out from inside iOS apps will now be able to without needing to accept Apple’s DMA rules. However, that isn’t as great as it sounds because these developers will still need to pay Apple.
Developers facing Core Technology Fees
Even if a user doesn’t face the Core Technology Fee that is connected to Apple’s new DMA rules, developers will still be required to pay to link to their websites. Apple have added two new fees – “Initial Acquisition Fee” and another “Store Services Fee.”
The first of these two fees is a commission. This commission is for connecting users with your app via the App Store. This applies during the first 12 months. The second fee is helping to fund Apple’s App Store operations. It’s charged on a 12-month fixed basis.
Any users who continue making new purchases of digital goods and services through the app will face this fee. Both are being applied to developers who don’t accept the new DMA terms set by Apple. It almost seems developers are being backed into signing the new terms.
If you’re a little confused so far, don’t worry, you aren’t alone. In fact, it seems even Spotify aren’t sure what to make of these changes. They have released a statement to that effect. They’ve gone on to say they condemn the revisions due to their understanding.
“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). The European Commission has made it clear that imposing recurring fees on basic elements like pricing and linking is unacceptable. We call on the Commission to expedite its investigation, implement daily fines and enforce the DMA.”
Spotify
