Spotify criticizes ``Apple's new rules pretend to comply with digital market laws, but essentially ignore them''

Apple has announced various changes to comply with the Digital Markets Act (DMA) enforced by the EU, including allowing sideloading of iOS apps outside the App Store. However, music subscription service Spotify criticized Apple on its blog, saying, ``Apple is ignoring digital market laws.''

Apple's Proposed Changes Reject the Goals of the DMA — Spotify

Exclusive: Apple faces 'strong action' if App Store changes fall short, EU's Breton says | Reuters

Having been designated as a gatekeeper under the EU's Digital Market Law, Apple announced on January 25, 2024 that it will allow iOS app distribution outside the App Store and payments outside the App Store in the EU.

Apple allows sideloading and payments outside the App Store in the EU in response to the Digital Markets Act, but strict conditions and new fees will be added - GIGAZINE

Spotify has been asking the European Commission to regulate Apple since 2019, and has believed that after the Digital Markets Act was enacted, Apple would follow the provisions of the law and its ideas. However, the new rules set by Apple only impose new taxes disguised as compliance with the law, and Spotify wrote on its blog, ``Apple's arrogance has been raised to a new level.'' 'It's a complete farce,' he said.

Apple's new rules are as follows. App developers in the EU can choose whether to apply the old rules or the new rules.

・Pay for download
App developers must pay Apple a fee of 0.5 euros (approximately 80 yen) called `` Core Technology Fee (CTF)'' for each iOS app download. This fee is only counted once per year per user, but it is incurred every year, as it is incurred not only at the time of initial installation, but also at reinstallation and update of the app, including automatic updates. Even if the user downloads the app but never launches it, a fee will be charged.

Spotify criticized ``Apple charges a fee for the purchase of digital products, so why do we need an additional fee?'' Apple's rules are fluid, and this fee will increase in the future. I also warned you about the possibility.

- Even if you use an external payment method, you will still be charged a 17% App Store usage fee.
By using a third-party payment method, you avoid paying Apple a 3% transaction fee, but you will be charged an App Store fee of 17% of sales on top of the core technology fee, so you can avoid paying Apple a 3% transaction fee. In most cases, you will end up paying Apple the same amount or more than under the previous rules.

・Alternative stores available
If you stop distributing from the App Store and use an alternative store, you will not be charged App Store usage fees, but even if you reduce this much, the core technology fee alone could increase your user acquisition costs by 10 times. About.

Other developers have also pointed out that the existence of core technology fees may preclude the existence of free or freemium apps.

Apple's ``core technology fee'' of approximately 80 yen per install for iOS apps could bankrupt developers of free and freemium apps - GIGAZINE

Spotify criticized Apple on its blog, saying, ``The rules have been set in a way that effectively prevents the selection of new rules, completely negating the goals of the Digital Markets Act.''

In addition to Spotify, Apple's new rules include Damian Geradin, a professor at the Faculty of Law at Tilburg University, who says, ``Apple is not taking digital market law seriously and is disrespecting both digital market law and app developers.'' Various criticisms have been received, including criticism that the

In an interview with Reuters, European Commission Commissioner for Internal Market and Services Thierry Breton said: ``If the proposed solutions are not sufficient, we will not hesitate to take strong measures.''

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