Spotify CEO Daniel Ek said in an X post on Friday that Apple's changes mean “a new low for them too.” The cameras come after Spotify issued a statement criticizing the iPhone maker for acting as if it “doesn't believe the rules apply to us.”
Apple has announced for the first time that it will allow developers to create and distribute apps on third-party marketplaces after the release of iOS 17.4. The changes only take effect within the EU, which requires Apple to comply with the Digital Markets Act, a European law aimed at curbing the power of big tech companies over the digital economy.
While this may sound like a win for app developers as it opens up more distribution channels, many are wondering which third-party marketplaces Apple will introduce into their systems. They are frustrated that not only do they retain control, but they also end up charging them for downloads on those marketplaces. Other Marketplaces.
“Distortion Master Class”
Ek said Apple's response to the Digital Markets Act is a “masterpiece of distortion”.
Under Apple's new changes, apps with more than 1 million downloads will have to pay a “core technology fee” for “every first annual install.” This would leave apps like Spotify – which has been downloaded more than 100 million times in the EU, according to Ek – an “unsustainable situation” due to the huge increase in downloads. The cost of acquiring new customers.
In a statement, Spotify described the fees as “extortion, plain and simple.”The company says the price is This can hurt developers, startups, and companies offering free apps that may not have the funds to pay Apple, especially if the app suddenly goes viral.
That means even a multibillion-dollar company like Spotify needs to “stick to the status quo” to remain profitable, Ek said.
In a statement, Apple recognized Spotify as the world's “most successful” music streaming app and said it seeks to support developers including Spotify.
“The changes we are sharing for apps in the European Union give developers options, including new options for distributing iOS apps and processing payments,” an Apple spokesperson told Business Insider in an email. . “All developers can choose to keep the same terms as they currently have. And under the new terms, over 99% of developers will pay her Apple the same amount or less.” Masu.”
Apple's firm grip on the iOS ecosystem has earned it billions of dollars in revenue, but it has also struggled with regulators who believe its strategy stifles innovation and stifles new entrants. It also causes conflict. Ek has also been a longtime critic of Apple's strategy, previously saying the company still has a ways to go before it becomes an “open and fair platform.”
Apple's App Store changes not only fall short of that ideal, Ek said, but also “make a mockery of the law and the spirit of the legislators who wrote it.”
The good news for him is that Apple's new changes won't be solidified until they pass talks with the EU. Ek said he hoped the EU “recognizes this for what it is and stands firm so that all the work we have done over the years does not go to waste.”
