The European Games Developer Federation has expressed its disappointment in the new EU iOS and App Store policies of Apple and is calling for “robust enforcement” of the Digital Markets Act.
Last week, Apple revealed new policies to comply with the EU’s Digital Markets Act, which targets large online companies – known as gatekeepers – and aims to create a “fairer business environment” for all.
According to Apple, the new policies include cutting the App Store revenue share from 30% to 17%, but adding 3% on Apple Pay transactions. Additionally, Apple will implement a new €0.50 fee for all downloads over a one million install threshold on an annual basis. An exclusion allows developers to maintain the previous 30% share if they don’t agree to the new terms.
The Response
Apple’s new policies have drawn criticism from various companies and organizations, including the EGDF, which issued a statement expressing “high disappointment in Apple’s new anticompetitive fee structure,” which Apple has termed the ‘Core Technology Fee’.
The trade body noted that the new install fee would make it difficult for any app developer to compete against Apple’s services and would discourage developers from using alternative payment systems or distributing games on third-party marketplaces.
The EGDF raised concerns about “unjustified limitations” introduced by Apple’s new rules, calling for the use of both Apple Pay and third-party payment systems simultaneously, avoiding anti-competitive data access barriers, and removing excessive warning notifications for third-party payments.
According to the EGDF, Apple’s new policies have created an artificial market access barrier for third-party storefronts.
The EGDF stated, “European SME game publishers will likely only be able to take the financial risk to exploit the new market opportunities once there is more clarity on whether or not the new Apple fee structure is in line with the EU rules.”
Increasing Criticism
The EGDF’s statement comes as Spotify and Xbox have also criticized Apple’s new EU rules in the face of the DMA.
Xbox president Sarah Bond stated in a tweet that she hoped the iPhone giant would listen to feedback and “work towards a more inclusive future for all.”
Spotify labeled Apple’s new rules “extortion” and a “complete and total farce”, while Epic Games CEO Tim Sweeney called the policies “hot garbage” and “a new instance of malicious compliance”.
