Apple has unveiled a new plan to comply with Europe’s Digital Marketplace Act (DMA), allowing app developers to link to payment systems outside the App Store. The company updated its App Store policy to show its commitment to DMA compliance, but it also introduced a new, rather complex fee structure. This move has once again left long-time opponents Epic Games and Spotify unhappy.
Criticism from Competitors
Shortly after the announcement, Epic Games CEO Tim Sweeney called the terms “another illegal 15% garbage fee” on social media X, saying it now “makes it completely unprofitable for developers to distribute their apps through either the Apple App Store or competing iOS app stores.” In late January, when Apple proposed the first changes to its app store policy, he accused the company of “not enforcing the law in good faith.”
Spotify also expressed dissatisfaction with Apple’s new policy. A representative for the music streaming service told TechCrunch that the new policy is “deliberately obfuscated,” but that “on its face” the company continues to “blatantly ignore” the DMA. Spotify stated, “We are currently assessing Apple’s deliberately obfuscated proposal. On its face, by charging a 25% fee for basic consumer communications, Apple is again blatantly ignoring the core requirements of the Digital Markets Act (DMA). The European Commission has made it clear that imposing recurring fees for basic features like pricing and links is unacceptable. We call on the Commission to expedite its investigation, introduce daily fines, and ensure compliance with the DMA.”
Apple’s Fee Structure and Future Plans
Apple says the new initial acquisition fee, which developers must pay when linking to third-party payment services, reflects the value the App Store provides in connecting developers and consumers in the EU. The second store fee reflects the current services and features Apple provides to developers: app distribution, App Store trust and security, advertising tools, fraud checks, and more. European developers who choose to use third-party payment systems will have to pay between 10% and 27% in fees, depending on the chosen mode of interaction with the App Store and participation in the small business program. This is less than the standard fee of 15% to 30%, but Epic Games and Spotify also considered the new terms unfair.
Epic Games plans to launch its own mobile games store for iPhone and iPad in the EU and charge developers a 12% fee for the store’s payment processing, or 0% when connecting third-party systems. In March, the European Commission fined Apple €1.84 billion for depriving streaming music services, including Spotify, of the ability to inform users about lower subscription prices when paying outside the app, reminds NIX Solutions.
As the situation continues to develop, we’ll keep you updated on any new developments or responses from the involved parties. The implementation of the DMA and its impact on the app ecosystem in the EU remains a closely watched topic in the tech industry.