At first glance, you'd think that companies like Epic and Spotify, both long-time critics of the “Apple tax,” would be happy to hear about the changes imposed on Apple in the 27 EU member countries thanks to the Digital. Markets Act (DMA). The DMA requires Apple to allow the installation of apps from other app stores and
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Apple has made some changes to the “Apple Tax,” reducing the range of commission Apple takes from processing in-app transactions from 15% to 30% to 10% to 17%. And Apple is even giving developers the ability to present subscribers with an alternative payment option that bypasses Apple's in-app payment platform. Apple doesn't get any discounts on in-app transactions using any of these alternative payment platforms.
However, developers seeking to avoid the “Apple tax” will have to pay Apple a “base technology fee” which amounts to half a euro for each annual installation of a particular app after reaching 1 million downloads. This does not make Epic and Spotify happy. By
The edgethe two companies, along with 32 other companies and alliances,
wrote a letter to the European Commission (EC) stating that Apple “makes a mockery of the DMA and the considerable efforts made by the European Commission and European institutions to make digital markets competitive.”
34 companies and alliances say Apple is making a mockery of EU digital markets law
App Store app developers have two choices when it comes to in-app payments in the EU. They can stick with the status quo and pay Apple 10-17% of in-app transactions, or offer subscribers an alternative payment platform but pay half a euro in fees for each annual install over 1 million for each of their applications. The companies and alliances write in their letter that “neither option is consistent with the DMA and both options would simply consolidate Apple's strong position in digital markets.”
The letter adds: “The new fee structure in the proposed new terms appears designed to maintain and even amplify Apple's exploitation of its dominance over app developers. With high transaction fees and basic technology fees (CTF), few app developers will agree to do this. “These unfair conditions. These fees will deter app developers from offering seamless in-app experiences to consumers and will hinder fair competition with potential alternative payment providers.”
The missive also notes that “Apple's new terms will erect new barriers and reinforce Apple's strong position in the iPhone ecosystem.” The companies signing the letter to the EC say that unless Apple makes some changes, they will demand “swift, timely and decisive action against Apple, to protect developers and benefit consumers as soon as the DMA obligations will apply. It is the only way. to ensure the DMA remains both credible and delivers competitive digital markets. »
The changes come into effect with the release of iOS 17.4 although the EU deadline is March 6. The EC will host an Apple Workshop on March 18 where feedback on Apple's DMA compliance can be discussed.
