Spotify and Epic Games Criticize Apple’s Updated DMA Compliance Strategy as ‘Confusing,’ ‘Illicit,’ and ‘Inadmissible’

Following Apple’s unveiling of its revised strategy to adhere to the European Union’s Digital Markets Act (DMA), voices of dissent have emerged from major players like Spotify and Epic Games. Spotify was quick to express its dissatisfaction through a statement to TechCrunch, labeling Apple’s adjustments as “unacceptable” and accusing the tech giant of again ignoring the DMA’s core principles. Tim Sweeney, CEO of Epic Games, criticized the update as “malicious compliance,” highlighting the introduction of “junk fees.”

In the European Union, where the new DMA legislation promises to intensify competition among app stores, Apple persists in its malicious compliance by levying an unauthorized new 15% “junk fee” on consumers opting for rival stores and monitoring transactions on these alternate platforms.pic.twitter.com/xAWGkOWPrH

— Tim Sweeney (@TimSweeneyEpic) August 8, 2024

The European Commission had already found Apple’s initial proposal for DMA compliance insufficient and was scrutinizing the newly proposed fee structure, which introduces a Core Technology Fee for utilizing Apple’s technology in mobile app development.

Under the revised policies announced by Apple, developers wishing to link their websites within their iOS applications are no longer mandated to comply with Apple’s DMA guidelines. That said, a financial obligation to Apple persists through newly introduced fees, aside from the Core Technology Fee. These include an “Initial Acquisition Fee” and a “Store Services Fee,” which cover the first 12 months of connecting users to an app through the App Store and support for App Store operations, respectively, on an annual basis for ongoing digital goods and services transactions.

Additionally, these fees will be imposed on developers who agree to Apple’s updated DMA terms, introducing extra costs on top of the initial app installation fees.

These modifications have propelled confusion, as highlighted by Spotify, which is still trying to wrap its head around the implications of these changes, as per its statement.

Nonetheless, the streaming giant has voiced its disapproval of the amendments based on its preliminary analysis:

“We are presently evaluating Apple’s purposefully perplexing proposal,” Spotify’s statement noted. “Upon initial review, by imposing up to a 25% fee for essential interaction with users, Apple starkly violates the DMA’s core mandates. The European Commission has clearly stated that recurring charges for fundamental activities like pricing and linking are unjustifiable. We urge the Commission to hasten its inquiry, impose daily penalties, and enforce the DMA.”

Epic Games, a staunch Apple critic and litigant against antitrust practices in app stores, also condemned the policy modifications as illegal.

CEO Tim Sweeney stated on X, “In the European Union, where the DMA legislation encourages more competitive app stores, Apple’s latest move introduces an illegitimate 15% ‘junk fee’ for users exploring alternative marketplaces and scrutinizes transactions on these platforms,” he remarked.

The EU’s acceptance of Apple’s suggested reforms is yet to be determined.