Introduction
Apple’s new plan to comply with the European Union’s Digital Markets Act (DMA) has been labeled as “a complete and total farce” by Spotify. The music streaming giant expressed its dissatisfaction on Friday, criticizing Apple’s approach towards the DMA.
The New Rules
Starting from early March, developers will have the option to offer alternative app stores on iPhone and opt out of using Apple’s in-app payment system. This system currently charges commissions of up to 30 percent. However, under Apple’s new EU regime, developers will still be required to pay a “core technology fee” of EUR 50 (roughly Rs. 4,500) per user account per year.
Spotify’s Stand
Spotify has been vocal about its displeasure with the new terms. According to Spotify, if it stays in the App Store and offers its own in-app payment under the new terms, it would have to pay a 17 percent commission.
Apple’s Response
In response to the criticism, Apple stated that every developer can choose to stay on the same terms in place today. Furthermore, under the new terms, more than 99 percent of developers would pay the same or less to Apple.
The Consequences
Apple could face strong action if changes to its App Store do not meet incoming regulations, as stated by the bloc’s industry chief.
Conclusion
The new rules under the DMA and Apple’s response to them have stirred a debate in the tech industry. While some view it as a step towards fair competition, others, like Spotify, see it as a farce. The impact of these changes on developers and the market remains to be seen.
