Spotify says Apple plans to comply with EU's DMA regulation 'farce'

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Spotify said on Friday that Apple's new plan to comply with the EU's Digital Markets Act (DMA) is “a complete and utter sham.”

Starting in March, developers will be able to offer alternative app stores on the iPhone and avoid using Apple's in-app payment system, which charges up to 30 percent commission under the block's new rules.

However, under Apple's new EU regime developers will still have to pay a “core technology fee” of EUR 50 (roughly Rs. 4,500) per user account per year.

“From the beginning, Apple has been clear that they don't like the idea of ​​adhering to DMA. So they've created an undesirable alternative to the status quo,” the music streaming giant said Friday.

Spotify said it would have to pay a 17 percent commission if it stays in the App Store and offers its own in-app payments under the new terms.

“Every developer can choose to remain on the same terms as today. And under the new terms, more than 99 percent of developers will pay Apple the same or less,” Apple said in an emailed statement to Reuters.

The bloc's industry chief told Reuters exclusively on Friday that Apple would face tough action if changes to its App Store are not in line with the upcoming rules.

© Thomson Reuters 2024


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