“Spotify Takes a Stand: Joining the Chorus Against Apple’s DMA Policies”%
Epic Games, Spotify, Proton, 37signals, and several other developers had already voiced their dissatisfaction with Apple’s approach to aligning its policies with the Digital Markets Act (DMA), deeming it as “extortion” and a display of “bad-faith” compliance. Now, these companies have taken a formal stance by penning a joint letter to the European Commission. In their collective appeal, they assert that Apple’s actions have undermined the essence of the new law, labeling it as a mockery. They implore the EC to swiftly intervene, emphasizing the necessity of decisive measures to safeguard developers’ interests.
Apple’s recent adjustments to comply with the DMA have sparked widespread criticism from developers and tech giants such as Meta, Mozilla, and Microsoft. Rather than fostering a fairer competitive landscape as envisioned, Apple’s actions seem to have skirted the intention of the regulation while meeting its technical requirements. Notably, the introduction of a Core Technology Fee, where developers outside the App Store must pay €0.50 for each first annual install exceeding 1 million, has drawn significant ire. This move particularly impacts potential rivals aiming to establish their own app platforms or distribute apps independently from Apple’s ecosystem to avoid commission fees.
In a fresh plea, 34 companies and associations spanning various industries are urging the European Commission to intervene.
The letter from the companies highlights Apple’s disregard for both the essence and specifics of the law, indicating that if unchanged, Apple’s actions would undermine the DMA and the extensive efforts of the European Commission and EU institutions to foster competitiveness in digital markets. Specifically, the letter outlines areas where the companies believe Apple is not in compliance with the DMA, citing the unnecessary complexity and confusion introduced by Apple’s system of requiring developers to opt into DMA terms. Moreover, the imposition of the Core Technology Fee further disincentivizes developers from agreeing to these terms. Despite widespread criticism, there are instances like MacPaw, which recently announced its acceptance of the terms to distribute its software subscription Setapp in the EU.
The companies further raise concerns about Apple’s “scare screens,” which are designed to caution users about the risks of transactions outside of Apple’s App Store. They argue that these screens will mislead users and diminish their experience, ultimately depriving them of genuine choice and the benefits afforded by the DMA.
Additionally, the letter asserts that for the DMA to effectively promote competition, it must allow for alternative app stores and sideloading. However, the companies contend that Apple makes it challenging for alternative app stores to thrive and does not permit sideloading under its DMA rules.
Meanwhile, Apple has released a whitepaper outlining its approach to addressing the DMA’s requirements regarding commissions and payments. Emphasizing its commitment to user security and privacy, Apple asserts that its efforts to comply with the DMA are aimed at safeguarding users from potential harm. In essence, Apple maintains that its actions are geared towards ensuring that users are not exposed to risks on iOS platforms.
There are indications that Apple might be succumbing to the mounting pressure. Today, it reversed its earlier decision to restrict the functionality of progressive web apps on devices in the EU. This move comes amidst reports from the Financial Times suggesting that the European Commission’s forthcoming ruling on competition within the streaming music sector will likely not favor Apple, potentially resulting in a hefty €500 million fine for the tech giant.
In response to these developments, Apple has sought to highlight Spotify’s success on iOS platforms, citing impressive installation figures exceeding 119 billion across Apple devices, among other achievements.
In response to the letter from the companies, a spokesperson from the European Commission informed TechCrunch that the six-month deadline imposed on major tech gatekeepers, including Apple, serves a specific purpose.
“The deadline allows for a thorough analysis of the compliance solutions, not solely based on initial announcements,” they explained. The Commission emphasized the importance of examining the solutions comprehensively, both by the Commission itself and stakeholders.
Furthermore, the spokesperson highlighted that the Commission is closely monitoring companies’ compliance efforts. Once granted full enforcement powers, the EC is prepared to take decisive action without hesitation.
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