Apple's Plan to Comply With EU's DMA Regulation a 'Farce', Spotify Says

Apple could face strong action if its proposed App Store changes do not comply with the Digital Markets Act, according to the EU's industry chief.

By Reuters | Updated: 27 January 2024 10:54 IST

Apple's Plan to Comply With EU's DMA Regulation a 'Farce', Spotify Says

Photo Credit: Apple

Apple has announced sweeping changes in the EU that will allow sideloading

Highlights

Apple, like other Big Tech firms, must comply with the DMA regulations
The EU has set a March 7 deadline for the Digital Markets Act rules
Apple says it will allow alternative app stores, sideloading in the EU

Spotify said on Friday that Apple's new plan to comply with the European Union's Digital Markets Act (DMA) is "a complete and total farce."

From early March, developers will be able to offer alternative app stores on iPhone and opt out of using Apple's in-app payment system, which charges commissions of up to 30 percent, under the bloc's new rules.

However, developers will still be required to pay a "core technology fee" of EUR 50 (roughly Rs. 4,500) per user account per year under Apple's new EU regime.

"From the beginning, Apple has been clear that they didn't like the idea of abiding by the DMA. So they've formulated an undesirable alternative to the status quo," the music streaming-giant said on Friday.

Spotify said it would have to pay a 17 percent commission if it stays in the App Store and offers its own in-app payment under the new terms.

"Every developer can choose to stay on the same terms in place today. And under the new terms, more than 99 percent of developers would pay the same or less to Apple," Apple said in an emailed statement to Reuters.

Apple faces strong action if changes to its App Store do not meet incoming regulations, the bloc's industry chief exclusively told Reuters on Friday.

© Thomson Reuters 2024

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