Apple will soon introduce major changes to iOS users in the EU as part of the Digital Markets Act (DMA) antitrust law. However, many developers are unhappy with Apple’s proposal to be DMA compliant. For this reason, Spotify and dozens of other companies have now shared a letter with the European Commission complaining about “Apple’s lack of compliance with her DMA.”
The letter states that Apple is not following the DMA.
The full letter, published on Spotify’s website, was signed by 34 companies and organizations across a variety of sectors, including aviation, publishers, gaming, streaming, payments, cryptocurrencies, and marketplaces. The group says it represents “tens of thousands of companies of all sizes” and serves “hundreds of millions of customers across Europe.”
These companies and organizations say they are “very concerned” about Apple’s DMA proposal. They argue that the proposal does not meet the requirements of the law and prevents developers from enjoying the benefits of the DMA “as soon as possible”.
“Apple’s new conditions not only ignore both the spirit and the letter of the law, but if left unchecked, they will undermine the extensive efforts of the DMA and the European Commission and EU institutions to improve the competitiveness of the digital market,” the letter said. It will make a mockery of.” “There are countless elements of Apple’s announcement that are not DMA compliant.”
The letter emphasizes that Apple is presenting developers with an “unfeasible choice” between the current terms and the new terms. They also question the new Core Technology Fee (CTF) for developers distributing apps under the new model.
To succeed, DMA must create real competitive opportunities, such as alternative app stores and sideloading. New app stores are important to foster competition and choice for both app developers and consumers. Sideloading gives app developers a real choice between the Apple App Store and their own distribution channels and technology. Apple’s new terms disallow sideloading, making the new app store difficult, risky, and economically unattractive for developers to install and use. Rather than creating healthy competition and new options, Apple’s new terms will erect new barriers and strengthen Apple’s hold on the iPhone ecosystem.
In addition to Spotify, other signatories to the letter include Blockchain.com, Deezer, Epic Games, and Mustang.
EU fines Apple $500 million over App Store anti-competition policies
The EU Commission is preparing to fine Apple $500 million over the App Store’s anti-competitive policies for music streaming services. The EU investigation’s decision follows complaints from Spotify that began in 2013. In 2021, the EU reached a preliminary conclusion that the App Store unfairly favors Apple Music over Spotify and other music streaming services.
In addition to the $500 million fine, the EU ruling will likely force Apple to allow Spotify and other streaming music services to direct users to external payment methods. This is commonly referred to as Apple’s “anti-steering” rule.
Apple reiterated its belief that Spotify’s complaints were about “Apple seeking unlimited access to all of Apple’s tools without paying anything for the value they provide.”
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