Spotify and Epic Games Call Apple’s Revised DMA Compliance Plan ‘Illegal’ and ‘Unacceptable’ – Apple

Strong reactions were recorded. Shortly after Apple announced its revised proposals for compliance with the Digital Marketing Act (DMA) on Thursday, which include looser restrictions but also the addition of two additional fees, Spotify called the plan “unacceptable,” arguing that Apple had once again completely ignored the “core provisions” of the DMA. Epic Games CEO Tim Sweeney, for his part, called the changes “fraudulent compliance” burdened by “slab fees.”

The European Commission has already ruled that Apple’s initial attempt to comply with the Digital Markets Act framework failed, and is already considering new fees proposed by Apple, which include an underlying technology fee, for the privilege of using Apple technology for anyone creating mobile apps.

Under Apple’s new proposals, app creators who want to include links to their websites within their iOS apps will not be required to accept Apple’s rules to comply with European law in order to do so. But they will still be responsible for paying Apple, although they will no longer be required to pay the underlying technology fee. Instead, Apple has added two new fees, a so-called initial acquisition fee and a second App Store services fee. The former is a type of fee for connecting users to the app through the App Store and is charged for the first 12 months, while the latter helps fund the operation of Apple’s App Store. It is charged on a flat basis for 12 months, meaning it will apply to users who continue to make new purchases of digital goods and services through the app.

Both fees are also charged to app creators who accept the new terms, so they are charged in addition to the basic technology fee for the number of times the app is installed.

The changes are confusing, so much so that Spotify isn’t yet sure how to explain them, according to its announcement. However, the company has condemned the changes, based on how it currently perceives the new policy to work.

“We are currently assessing Apple’s deliberately devious proposal,” the company said in a statement. “By ostensibly charging up to 25% for basic user connections, Apple is once again defiantly ignoring the fundamental provisions of the Digital Markets Act. The European Commission has made it clear that charging recurring fees for basic parameters such as pricing and interconnection is unacceptable, and we call on the Commission to accelerate its investigation, impose fines on a daily basis and enforce the legislation.”

Epic Games, the creator of Fortnite and a fierce critic of Apple, with which it has clashed in court on several occasions, has called the proposed changes illegal.

In a post on X, Tim Sweeney highlights: “In the EU, where new legislation opens up digital markets to competition, Apple continues its fraudulent compliance by imposing a new, illegal 15% fee on users who choose rival stores.”

It remains to be seen how the EU will react to Apple’s proposed changes.