Fee Fiasco: Spotify Slams Apple’s EU Regulatory Response as a Mockery

In response to Apple’s plan to comply with the European Union’s Digital Markets Act (DMA), Spotify has labeled the initiative as a “complete and total farce.” The critique comes as developers will soon have the option to offer alternative app stores on iPhones and opt out of Apple’s in-app payment system, which currently imposes commissions of up to 30%, in adherence to the bloc’s new rules.

Starting from early March, the changes will grant developers more flexibility but still require them to pay a “core technology fee” of €50 cents per user account annually under Apple’s new EU regime. Spotify, a major player in the music streaming industry, expressed dissatisfaction with Apple’s approach, emphasizing the imposed fees and characterizing the alternative presented as undesirable.

Apple, however, defends its stance, stating that developers can choose to remain under existing terms, and more than 99% of them would either pay the same or less under the new conditions. The debate raises questions about the balance between corporate policies, competition, and the evolving landscape of app store regulations.

In the event that Apple’s changes fail to align with incoming regulations, the company could face substantial consequences, as highlighted by the European Union’s industry chief in an exclusive statement to Reuters on Friday.

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