Jakarta, CNBC Indonesia – Spotify slams Apple. The streaming platform's new business model offered by Apple in the European Union is just subterfuge and blackmail.
New regulations in the European Union are forcing new technology platforms such as Apple to offer new business models to companies providing applications on the iPhone. However, the changes offered by Apple are accused of being no different from the old system.
The European Union has passed a regulation known as the Digital Market Act (DMA). This regulation opens up space for various new business patterns that were previously prohibited by platform owners such as Apple with the App Store on the iPhone and Google with the Play Store on Android phones.
DMA, for example, requires Apple and Google to allow the installation of applications from outside the application store, alternative application stores, and alternative browser options.
At the end of last week Spotify issued a response to the “adjustments” made by Apple to comply with DMA regulations. The streaming giant, a competitor to Apple Music, called the new fees quoted by Apple extortion. Apple's adjustments were accused of being just a trick that shows Apple's arrogance.
Apple at the beginning of last week announced several changes as an adaptation to DMA. The commission they take from app developers in the European Union will be lowered.
However, Apple sets a “core technology fee” of 0.5 euros for each first install per year with a maximum limit of 1 million installs. This fee applies to all installation methods, both via the App Store and other application stores. In addition, Apple sets a transaction processing fee of 3 percent if the application uses an in-app purchase system other than Apple's.
Apple was also criticized by Epic Games CEO Tim Sweeney. Epic Games is a game developer and publisher Fortnite who successfully won a lawsuit over Apple's exclusive payment system.
Sweeney said Apple's plan was just a “bad faith move” full of “junk costs.”
Apart from Epic and Spotify, Apple was also criticized by Match, the parent company of the dating application Tinder. Application development companies have repeatedly protested Apple's exclusive payment model.
Spotify CEO Daniel Ek, via Twitter
Apple's solution, he said, was a form of “masterful distortion” because it offered developers a choice between sticking with the current system or following a “complicated new model.”
Ek said tens to hundreds of millions of users in the EU will now face a “new tax” every time they download an app or make an update.
He believes that Apple's new system is designed to keep app companies from turning to new ways of distribution, including sideloading and alternative app stores.
“Without big apps on these alternative channels, the app store is unattractive. Apple's App Store remains in power,” Ek said.
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