Apple's Revised Compliance Plan Under EU Scrutiny
Apple's latest compliance plan with the EU's Digital Markets Act (DMA) is under fire from Spotify and Epic Games. Spotify deems the plan "unacceptable," accusing Apple of ignoring the DMA's fundamental requirements. Meanwhile, Epic Games CEO Tim Sweeney criticizes the revisions as "malicious compliance" involving "junk fees."
Apple's new policy includes looser restrictions but introduces two new fees: an "Initial Acquisition Fee" and a "Store Services Fee." These fees replace the previously failed "Core Technology Fee" and are applied to developers who link out to their websites from iOS apps. Despite these changes, developers still have to pay Apple, complicating the situation further.
The European Commission had previously deemed Apple's initial DMA compliance attempt a failure and is now investigating the new fee structure. Spotify is currently assessing the impact of these new fees, which could reach up to 25% for basic user communication, a move Spotify sees as a blatant disregard for the DMA.
Key Takeaways
- Apple introduces new fees under revised DMA compliance plan, sparking criticism.
- Spotify calls Apple's plan "unacceptable," accusing it of disregarding DMA requirements.
- Epic Games CEO labels Apple's revisions as "malicious compliance" with "junk fees."
- Apple imposes a 15% fee on users migrating to competing stores in the EU.
- Spotify urges the EU Commission to expedite investigation and enforce DMA rules.
Analysis
Apple's revised DMA compliance, introducing new fees, faces backlash from Spotify and Epic Games, impacting EU tech regulation and developer costs. The direct causes include Apple's need to align with EU regulations while maintaining revenue streams. Short-term consequences involve increased developer expenses and potential app market disruption. Long-term, this could lead to stricter EU enforcement and shifts in app distribution models, affecting global tech competition and consumer pricing.
Did You Know?
- Digital Markets Act (DMA): The DMA is a regulatory framework enacted by the European Union to ensure fair competition in the digital space, aiming to prevent large tech companies from abusing their market dominance by imposing strict rules on their business practices.
- Initial Acquisition Fee and Store Services Fee: These are new fees introduced by Apple as part of its revised compliance plan with the EU's DMA, aiming to meet the regulatory requirements, although facing criticism for potentially undermining the act's goals.
- Malicious Compliance: This term, as used by Epic Games CEO Tim Sweeney, refers to a situation where a company complies with a regulation on the surface but does so in a way that undermines the spirit or intent of the regulation.