Spotify, one of Apple’s most vocal critics, has recently released a scathing statement criticizing Apple’s new plan to comply with the European Union’s (EU) tech regulations. In this statement, Spotify accuses Apple of attempting to force developers to stay within its app store and describes the new plan as a “complete and total farce.” This article delves deeper into Spotify’s critique and explores the controversy surrounding Apple’s new rules.
One of the key aspects of Apple’s new plan is the introduction of the Core Technology Fee, which requires developers using third-party app stores to pay a fee of €0.50 for each annual app install after 1 million downloads. Spotify argues that this fee is nothing more than “extortion, plain and simple,” and it will adversely impact developers, particularly those offering free apps. Spotify expresses concern that developers will be required to pay this fee even if users download their app but never use it or forget to delete it.
Additionally, Spotify highlights Apple’s decision to continue taking a 17 percent commission from developers using third-party payment processors. This commission will make the choice between the status quo and Apple’s new program exceedingly difficult for developers. Spotify raises concerns about the financial burden this places on developers and suggests that Apple is aiming to dissuade them from using third-party payment processors.
While Spotify had plans to introduce its own in-app payment system in the EU, the new regulations have created an untenable situation for the company. Spotify CEO Daniel Ek expresses concern over the impact of the Core Technology Fee and its effect on customer acquisition costs. With Spotify’s EU Apple install base in the range of 100 million, the new tax on downloads and updates could potentially increase their costs tenfold. Given these circumstances, Spotify states that it cannot afford the fees and its only option is to continue with the status quo.
Apple’s new rules have generated waves of criticism from developers, both large and small. Many express frustration over the fees associated with bringing their apps outside the App Store or introducing alternative payment options. The EU Commission has stated that it will issue a response to Apple’s changes when the regulations officially come into effect in March. In the meantime, developers will have ample time to analyze and scrutinize the new rules.
Spotify’s scathing statement serves as a powerful critique of Apple’s new tech regulations. The company accuses Apple of using tactics such as extortion and manipulation to keep developers within its app store. This controversy has caused uproar among developers and drawn attention to the impending changes in the EU’s regulations. It remains to be seen how Apple and the EU Commission will respond to the mounting criticism and whether any revisions will be made to address the concerns raised by Spotify and others.
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