Spotify, a music streaming service, has strongly criticized Apple’s new rules for compliance with the European Union’s Digital Markets Act, calling them a “complete and total farce” that “does not comply with the letter and the spirit of the law.”
The aim of the DMA is to identify ‘gatekeepers’ – large online platforms, and enforce regulations to create a “fairer business environment” for all companies. In Apple’s case, the requirements include opening up the App Store and iOS ecosystem to third-party marketplaces and payment options.
In response, Apple’s new business terms propose reducing its revenue share to 17% – with a further 3% increase if publishers use Apple Pay.
Additionally, a new €0.50 fee (referred to as Core Technology Fee) will be added for all downloads over a one million install threshold on an annual basis.
Developers who do not wish to use alternative payments or marketplaces can stick with the existing terms.
Spotify’s Response
Spotify, which has been campaigning for changes to Apple’s App Store practices for nearly five years, has made a strong attack on Apple’s new rules.
The company stated, “Apple has just shown the world, they don’t think the rules apply to them… This takes the level of arrogance to an entirely new place.”
Spotify labeled the new €0.50 download fee “extortion” and expressed concern that developers would have to pay the fee even if users downloaded an app and never use it or delete it.
Spotify’s CEO on Apple’s Business Terms
Spotify CEO Daniel Ek, via Twitter, called Apple’s new business terms a “masterclass in distortion”, stating that Apple’s message is clear: “Disrupt their toll-booth operation, and they’ll ensure you regret it.” Ek expressed admiration for Apple’s design ethos and products but criticized the company’s actions as “hostile” and “not in compliance with the DMA.”
Spotify had recently declared victory over Apple in its campaign against the company’s App Store practices, but Apple’s new business terms appear to have impacted those plans for now.
