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Apple's new rules challenge the authority of the EU Digital Markets Act, Spotify and Epic Games condemn it

2024-08-11

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IT Home reported on August 11 that Apple's response to the EU Digital Markets Act (DMA) has sparked strong dissatisfaction among developers. Previously, EU regulators preliminarily ruled that Apple violated the DMA because the company did not allow app developers to guide users to other channels to purchase content and services.

Faced with pressure, Apple made some concessions, allowing developers to add links in the app to guide users to other platforms for purchase. However, developers found that behind Apple's "compromise" were new charging traps.

According to IT Home, starting this fall, developers in the EU will be able to add links within their apps to guide users to other platforms to complete purchases. Apple said that developers can promote products that can be purchased on other app stores, other apps, or websites. These links can be accessed outside the app or through a web view within the app.

But the problem is that Apple also introduced a new "store service fee", which means that within the first year after the user installs the app, the developer sells the app through any platform.Digital GoodsApple has to pay a certain percentage of fees for any app or service. This means that even if users buy products in other app stores or on developer websites, Apple can still take a cut, even if they buy goods on Windows computers. What's worse, if users reinstall or update the app, the one-year charging cycle will start over.

Apple's charging standards are as follows: 20% for apps listed only on the App Store; 10% plus other fees for apps listed on third-party app stores; in addition, within one year after the user installs the app, Apple will charge an additional 5% for purchasing digital goods and services on any platform. This means thatApple can earn up to 25% of purchases made by users within one year of downloading an app.

Spotify spokesperson Jeanne Moran said: "We are evaluating Apple's intentionally confusing proposal. Apple has once again blatantly ignored the basic requirements of the Digital Markets Act. The European Commission has made it clear thatDuplicated fees for basic elements like pricing and linking are unacceptable. We call on the Commission to expedite its investigations, impose daily fines and enforce the DMA.”

Apple argued that the App Store provides value for developers to connect with EU consumers, so the initial acquisition fee is necessary, while the store service fee reflects the ongoing services and features Apple provides to developers. However, many well-known developers, including Epic Games CEO Tim Sweeney and music streaming Spotify, have strongly opposed this.

How EU regulators will respond to this controversy is attracting much attention.