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Spotify has sharply criticized Apple’s recent changes to its App Store policies, calling them “intentionally confusing” and a violation of the European Union’s Digital Markets Act (DMA).
According to Apple, the updated rules are intended to give app developers more flexibility in providing alternative payment options for users.
However, Spotify and other critics argue that the changes do not solve the underlying problems and continue to disadvantage developers.
Spotify and Epic Games are not happy with Apple
Apple has changed its App Store policies in direct response to the European Union’s Digital Markets Act (DMA).
The DMA, which came into force in March 2024, aims to curb the dominance of large technology platforms by ensuring fair competition in the digital market.
The DMA focuses on six core companies (Apple, Alphabet, Meta, ByteDance, Amazon and Microsoft) and requires companies like Apple to allow app developers to use alternative payment systems and promote their services outside the App Store ecosystem.
In response, Apple announced that developers could now promote and offer deals directly in their apps, even if those deals are available on other platforms.
This represented a significant departure from Apple’s previous policy, which only allowed developers to link to external websites for such promotions.
But Spotify and other developers argue that Apple’s new fees effectively undermine the DMA. As part of the revised terms, Apple introduced two new fees: a 5% “initial acquisition fee” and a 10% “store service fee,” both charged on a rolling 12-month basis.
Developers must also pay a “core technology fee” for high-volume apps, which is charged for each first annual install over one million.
These fees could increase the total commission to as much as 25 percent – an amount that Spotify says is in direct violation of the DMA’s intent.
Spotify has been a vocal critic of Apple’s App Store policies for years, particularly the fees Apple charges for in-app transactions. The streaming giant claims these fees are a form of “taxation” that stifles competition and innovation.
In response to Apple’s recent changes, Spotify called on the European Commission to accelerate its investigation into Apple’s DMA compliance and impose daily fines until the company is fully compliant with the law.
Epic Games has now also commented on the issue. Tim Sweeney, CEO of Epic Games, accused Apple of “malicious compliance” with the DMA.
He argues that the new fees Apple has introduced are aimed at punishing developers who try to drive users to competing app stores, thereby maintaining Apple’s control over the app distribution market.
Apple, for its part, defends the fees by saying they are necessary to maintain and improve the App Store’s infrastructure. The company argues that it has invested heavily in creating a platform that benefits developers and it is only fair that those who use the platform contribute to its maintenance.
Apple also pointed out that fees are lower than before and that developers now have more freedom to communicate with users about alternative payment methods.
Despite these defenses, it is clear that Spotify and Epic Games are not happy with Apple’s revised policies.
They argue that the new terms still give Apple an unfair advantage in the market and do not comply with the spirit of the DMA. The European Commission has announced that it will review developers’ feedback and assess whether Apple’s changes are sufficient to meet the law’s requirements.
