Spotify Technology SA SPOT has leveled accusations against Apple Inc. AAPL for allegedly subverting the goals of the European Union’s Digital Markets Act (DMA) through its proposed “Alternative App Store” changes.
Breaking Down the Accusations
Spotify, known for its melodious tech repertoire, has been in a quagmire of discontent with Apple for the last five years. The enactment of the DMA was envisioned to be a harmonious resolution, but Spotify cries foul as it claims Apple’s maneuvers lack respect for the rules.
Strong Words From Spotify’s CEO
According to Spotify’s co-founder and CEO Daniel Ek, Apple’s recent conduct represents a new low, even for the tech giant notorious for pushing the envelope. He likened Apple’s plan to a “complete and total farce,” asserting that it undermines the DMA’s essence and penalizes triumphant developers.
The Call for Action
Spotify plea to the European Commission to enforce the DMA and rebuke Apple’s “blatant disregard” for its principles. The company warns that should the Commission remain inert, Apple’s dominion may continue to endure.
Implications for Developers
Apple’s proposed “Alternative App Store” model could spell financial woes for developers, including Meta Platforms Inc. and others, with potential annual payments running into the millions.
Core Technology Fee
Apple’s mandate for developers desiring to utilize third-party app stores or payment providers in the EU involves a “Core Technology Fee.” Developers reaching extraordinary scale on iOS in the EU would be obligated to pay a €0.50 Core Technology Fee for each app install exceeding one million in the past 12 months.