In a move that has sparked widespread criticism, Apple has revised its compliance plan for the European Union’s Digital Markets Act (DMA). The updated plan includes loosened restrictions along with the addition of two new fees. However, Spotify and Epic Games have come out against the changes, calling them "unacceptable" and an example of "malicious compliance."
Spotify’s Statement on Apple’s Revised Compliance Plan
In a statement shared with TechCrunch, Spotify called Apple’s revised compliance plan "unacceptable." The company stated that it is currently assessing the new policy but has already condemned it based on its current understanding. According to Spotify, Apple’s proposal demands as much as a 25% fee for basic communication with users, which is in blatant disregard of the fundamental requirements of the DMA.
"We are currently assessing Apple’s deliberately confusing proposal," the statement reads. "At first glance, by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA). The European Commission has made it clear that imposing recurring fees on basic elements like pricing and linking is unacceptable. We call on the Commission to expedite its investigation, implement daily fines and enforce the DMA."
Epic Games’ Criticism of Apple’s Revised Compliance Plan
CEO Tim Sweeney of Epic Games also criticized Apple’s revised compliance plan, calling it another case of "malicious compliance" involving "junk fees." In a post on X, Sweeney stated that Apple is imposing an illegal new 15% junk fee on users migrating to competing stores and monitoring commerce on these competing stores.
"In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores," Sweeney wrote.
The New Fees Introduced by Apple
Under Apple’s revised compliance plan, developers who want to link out to their websites from inside their iOS apps will no longer have to accept Apple’s DMA rules. However, those developers will still have to pay Apple even if they are not subject to the Core Technology Fee that comes with Apple’s new DMA rules.
The two new fees introduced by Apple are:
- Initial Acquisition Fee: This is a commission of sorts for connecting users with the app through the App Store. It applies during the first 12 months.
- Store Services Fee: This helps to fund Apple’s App Store operations and is charged on a 12-month fixed basis.
The European Commission’s Investigation
The European Commission has already determined that Apple’s first attempt at DMA compliance had failed, and an investigation into the new fee structure proposed under Apple’s DMA rules is ongoing. The Commission will be scrutinizing whether Apple’s revised compliance plan meets the requirements of the DMA.
Conclusion
Apple’s revised compliance plan for the Digital Markets Act has sparked widespread criticism from Spotify and Epic Games. While the updated plan includes loosened restrictions, it also introduces two new fees that have been condemned by critics as "junk fees." The European Commission will be investigating whether Apple’s revised compliance plan meets the requirements of the DMA, and it remains to be seen how this saga will unfold.
Additional Background Information
The Digital Markets Act is a regulation aimed at promoting competition in the digital market. It sets out rules for large tech companies, including those related to interoperability, self-preferencing, and data sharing.
Apple’s revised compliance plan is part of the company’s efforts to comply with the DMA. However, the new fees introduced by Apple have raised concerns among developers and critics who see them as an attempt to maintain Apple’s dominance in the market.
Timeline
- January 2023: The European Commission launches an investigation into Apple’s first attempt at DMA compliance.
- March 2023: Apple announces its revised compliance plan, including loosened restrictions and two new fees.
- April 2023: Spotify and Epic Games come out against the changes, calling them "unacceptable" and an example of "malicious compliance."
- May 2023: The European Commission begins investigating whether Apple’s revised compliance plan meets the requirements of the DMA.
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