Spotify Challenges Apple’s New Plans to Meet EU’s Digital Markets Act

Spotify has openly criticized Apple’s proposed measures to align with the European Union’s Digital Markets Act (DMA) as per the news received from Reader Wall’s resources. The music streaming company labelled Apple’s new plan a “complete and total farce”.

Alternative App Stores and Reduced Commissions

Under the new rules set by the DMA which come into effect in early March, developers are granted the privilege to offer alternative app stores on iPhones. Furthermore, developers are given the option to opt out of using Apple’s in-app payment system, which previously demanded commissions of up to 30%.

Apple’s Core Technology Fee

In spite of these changes, developers are still required to pay a “core technology fee.” Under Apple’s new setup for the EU, this equates to 50 euro cents per user account per year. Spotify commented on this new rule stating, “From the start, Apple has demonstrated its lack of enthusiasm with the concept of the DMA. Therefore, they’ve crafted a less favorable alternative to the status quo.”

Spotify’s Position

According to Reader Wall’s exclusive, Spotify estimates that under the new terms, if it decides to stay in the App Store, while simultaneously offering its in-app payments, it’ll have to shell out a 17% commission fee.

Meanwhile, Apple, in a statement they sent to Reader Wall, claimed, “Under the new terms, more than 99% of developers would either pay the same or less to Apple. Every developer can choose to maintain the terms that are currently in place.”

Potential Consequences for Apple

According to the info shared by Reader Wall, Apple could face stringent actions if the changes to its App Store do not comply with the new regulations, the bloc’s industry chief warned them on Friday. As a news platform, we look forward to bringing you more updates about this ongoing issue.