Spotify has joined the chorus of disapproval over Apple’s response to the EU’s Digital Markets Act (DMA). The streaming music company has labeled Apple’s compliance plan as “extortion” and a “complete and total farce.” This comes in the wake of Apple’s announcement of new fees for developers, which Spotify and others believe to be a way for the tech giant to sidestep the regulations.
Key Takeaway
Spotify has strongly criticized Apple’s compliance plan with the EU’s Digital Markets Act, labeling it as “extortion” and a “complete and total farce.” The new fees imposed by Apple have raised concerns about their potential impact on app developers and the digital market as a whole.
Apple’s New Fees and Spotify’s Response
Apple’s compliance plan with the EU law includes reduced commissions for app developers, but it also introduces a “core technology fee” and a 3% payment processing fee. Spotify’s CEO, Daniel Ek, has criticized these new fees, stating that they could significantly increase customer acquisition costs for Spotify and other large apps with millions of EU users. Ek argues that the new fees are designed to discourage apps from seeking alternative distribution channels, ultimately maintaining Apple’s App Store dominance.
Spotify’s Dilemma
Ek highlights the impact of the increased fees on Spotify, stating that the company is left with no choice but to stick with the current system, despite its efforts to advocate for increased regulation and fairness. The new fees could potentially skyrocket customer acquisition costs for Spotify, making it financially unviable to opt for the new terms proposed by Apple.
Call for Action
Ek concludes with a challenge to lawmakers, urging them to recognize Apple’s actions and stand firm against them. He emphasizes the need for the world to closely observe the situation, indicating the significance of the ongoing developments.
