Apple’s recent changes to its Digital Markets Act (DMA) compliance plan in the European Union have sparked significant controversy, especially among prominent app developers like Spotify and Epic Games. In an attempt to adhere to the EU’s regulations, Apple has revised its policies, allowing developers to direct users to external payment options outside the App Store. However, these updates have been met with criticism, particularly due to the introduction of new fees that developers must pay when using these external links.
The core of the issue lies in Apple’s introduction of two new fees: the “Initial Acquisition Fee” and the “Store Services Fee.” The Initial Acquisition Fee is a commission applied to sales made by a new app user during the first 12 months after an app’s download, while the Store Services Fee is a rolling charge that applies for 12 months following any app install, update, or reinstall. These fees are intended to cover the value Apple believes it provides through the App Store, such as connecting developers to customers and maintaining the platform’s infrastructure.
However, these changes have not satisfied developers. Spotify has called the new fee structure “confusing and unacceptable,” arguing that Apple continues to disregard the fundamental requirements of the DMA by imposing what it considers to be excessive and recurring fees. Epic Games CEO Tim Sweeney has been equally critical, labeling the fees as “illegal” and accusing Apple of “malicious compliance” with the EU’s regulations. Both companies argue that these fees make it uneconomical for developers to distribute their apps through both the Apple App Store and competing platforms.
A significant development in this ongoing saga is Apple’s decision to allow the Epic Games Store to operate in the EU, a direct consequence of the DMA’s enforcement. This move, while a step forward, has not quelled the growing discontent among developers who face the burden of the newly introduced fees.
Apple’s revisions come after the European Commission determined that its initial attempt at DMA compliance failed, leading to further investigation. While the new policies offer more flexibility for developers in terms of external linking and promoting alternative payment options, the added financial burdens have only intensified the debate.
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