Apple recently published an update on changes required by the EU’s Digital Markets Act. The aim is to make it easier for developers to use external links to direct customers to payment options outside of the App Store, such as for in-app purchases and subscriptions. A new and complicated fee structure has also been implemented.
Shortly after Apple announced the new terms, Epic Games CEO Tim Sweeney took to Twitter, or X, to say that Apple’s commission was “an illegal new 15 percent junk fee,” and went on to say that these terms “make it completely uneconomical for developers to distribute their apps through both Apple’s App Store and competing iOS app stores.”
As CEO of Epic Games, Sweeney has long been at loggerheads with Apple, and not just because of the temporary removal of Epic Games Fortnite from the App Store. Sweeney has repeatedly criticized Apple in the past for its approach to billing in the App Store and the associated commission. Sweeney also sharply criticized Apple’s implementation of the Digital Markets Act. He accused Apple of not adhering to the DMA’s requirements.
Spotify: “Intentionally confusing proposal”
The large Swedish music streaming service Spotify also had no positive words to say about Apple’s recent DMA adjustments. In a statement to TechCrunch It was stated that the changes made were “intentionally confusing”, but “at first glance” Apple continues to “blatantly” disregard the requirements of the DMA.
“We are currently reviewing Apple’s deliberately confusing proposal. On the face of it, Apple’s demand for up to 25 percent fees for basic communications with users is once again a blatant breach of the basic requirements of the Digital Markets Act (DMA). The European Commission has made it clear that charging recurring fees for basic elements such as pricing and linking is unacceptable. We call on the Commission to speed up its investigation, impose daily fines and enforce the DMA.”
In the adjustments that Apple has made to the DMA, developers have to pay between 10 and 27 percent in commission to Apple if they direct customers via links to payment options outside of the App Store. The amount of the commission depends, among other things, on whether the development teams belong to the App Store Small Business program and which App Store terms they have agreed to.
Before the changes, the commission was 15 to 30 percent, depending on the use case. However, Epic Games and Spotify do not seem to be satisfied with the fee reductions: Since both are large companies, they have to pay the Core Technology Fee (CTF) introduced by Apple, which is 0.50 euros per transaction and is likely to cost the two companies several tens of thousands of euros per month.
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