Apple’s compliance with the EU’s Digital Markets Act has prompted criticism from some quarters.
A recent announcement made by Apple revealed the modifications that the company is doing to the App Store in order to comply with the Digital Markets Act (DMA) of the European Union, which will become fully operational on March 7. As soon as the company’s intentions and conditions for other app stores were announced, the company’s detractors immediately condemned them. Spotify referred to the modifications as a “total farce.” The Xbox, which is manufactured by Microsoft, is one of the most recent corporations to criticize Apple’s compliance plans. In response to a post on X by Spotify CEO Daniel Ek about the changes at Apple, Xbox president Sarah Bond stated that the new policy of the company is “a step in the wrong direction” and that she hopes the company would listen to input in order to create a “more inclusive future for all.” Apple has been making a number of changes recently.
We believe constructive conversations drive change and progress towards open platforms and greater competition. Apple's new policy is a step in the wrong direction. We hope they listen to feedback on their proposed plan and work towards a more inclusive future for all. https://t.co/mDRI5KPJf6
— BondSarahBond (@BondSarah_Bond) January 29, 2024
Platform operators such as Apple and Google are required to make their systems accessible to competing app shops in order to comply with DMA regulations. Apple, on the other hand, mandates that these alternative app stores must adhere to severe regulations and have moderation capabilities that are comparable to those that Apple uses. A minimum amount of around $1.1 million in credit that their operators can use to pay developers will also be required of them, and they will be required to demonstrate that they have access to this credit. After an application exceeds the threshold of one million downloads for the year, Apple has implemented a new rule that requires developers to pay a Core Technology Fee of €0.50 (about 54 cents) each install. This rule applies to developers as well. The aforementioned regulation is applicable regardless of whether the application is released through Apple’s App Store or through a different marketplace.
The Chief Executive Officer of Epic Games, Tim Sweeney, stated that Apple’s strategy “is a devious new instance of Malicious Compliance.” He went on to say that Apple is essentially forcing developers to choose between having their apps exclusively available on the App Store and complying with a new “also-illegal anticompetitive scheme rife with new Junk Fees on downloads,” in addition to imposing extra taxes on payments that the company does not process itself. Apple’s App Store is a large industry, and the company takes a commission of 15 to 30 percent of the earnings that developers make. Within the context of the fiscal year 2022, for example, Apple stated that the ecosystem of the App Store “facilitated $1.1 trillion in developer billings and sales.”
After intentionally breaking the rules of the App Store and providing discounts to gamers who made purchases outside of Apple’s ecosystem, Epic removed Fortnite from the App Store in the year 2020. The developer recently made the announcement that it will be building its own shop for iOS devices and that it will be bringing Fortnite back to the iPhone and iPad in Europe this year when the DMA goes into effect. In addition to being a vociferous critic of Apple, Spotify intends to develop its very own in-app payment mechanism for iOS users in Europe. This will be available to customers in Europe.