On January 26, CEO of Swedish music streaming service Spotify Daniel Ek criticized Apple’s proposed modifications to the App Retailer forward of the EU’s Digital Markets Act (DMA) and known as the modifications “imprecise and deceptive at finest ”, a “new low for the corporate” and “extortion” .
Spotify’s CEO, in a weblog submit, claimed that underneath the false pretense of compliance and concessions, Apple introduced a brand new plan “which is an entire and utter sham.”
He argued: “Apple is nothing if not constant. Though they’ve been behaving badly for years, this takes the extent of conceitedness to a complete new place. Below the false pretense of compliance and concessions, they introduced a brand new plan which is an entire plan. and a complete farce. Basically, the previous tax was made objectionable underneath the DMA, so that they created a brand new one, disguised underneath the regulation.”
READ ALSO: Spotify takes on Apple: audiobooks and subscriptions out there within the app, bypassing the 30% tax
Ek argued that Apple was clear from the beginning that they did not like the thought of complying with DMA, so that they formulated an undesirable different to the established order.
In his weblog, Ek known as Apple’s new €zero.50 per obtain payment yearly in perpetuity to Apple for permitting builders to exist on iOS “extortion, plain and easy “.
“That is extortion”
“That is extortion, plain and easy. If Apple already expenses a 17% fee (and 10% for recurring funds) on digital items bought, why ought to in addition they cost a flat annual payment for every person?” Ek wrote.
He added that for any developer questioning if this might work for them, they should have lower than one million clients and basically signal as much as not develop in the long run.
“From what I’ve learn of Apple’s proposal, a developer must pay this payment even when a person downloaded the app, by no means used it, and forgot to delete it. This can have an effect on builders, would-be start-ups and those that provide probably the most free apps: How will a developer pay Apple again if their free app goes viral – tens of millions of accounts set up that free app after which that developer Does Apple owe him tens of millions?” he requested.
Below the brand new phrases, if Spotify stays within the App Retailer and desires to supply in-app cost, it must pay a 17% fee and a zero.50 Euro Core Expertise payment per set up and per yr.
“This implies we’re the identical or worse than underneath the previous guidelines. And if we managed to take away our app from the App Retailer and solely exist within the Different App Retailer, that also would not work,” he stated.
“With our EU Apple set up base within the 100 million person vary, this new tax on downloads and updates might skyrocket our clients’ acquisition prices, probably rising them tenfold. It’s because we’ve got to pay for every set up or replace of our free or paid program. app, even for individuals who now not use the service,” he added.
In response to the entry into power of the DMA in March, Apple introduced modifications to iOS, Safari and the App Retailer within the European Union.
In line with the main points, the brand new modifications embrace new controls and expanded disclosures and protections to scale back the privateness and safety dangers that DMA creates, the corporate stated in an announcement.
Nonetheless, the principle information is that third-party app shops shall be allowed on iOS for the primary time. In March, the next modifications will include iOS 17.four.
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