Apple Announces EU App Store Changes – Spotify’s CEO Not Happy

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Apple EU App Store changes 

Apple is not enjoying allowing developers to have alternative payment methods. However, it has to comply with the DMA

“The changes we’re announcing today comply with the Digital Markets Act’s requirements in the European Union, while helping to protect EU users from the unavoidable increased privacy and security threats this regulation brings. Our priority remains creating the best, most secure possible experience for our users in the EU and around the world.” – Apple

But the announcement wasn’t great news for developers. 

So, on January 28, Spotify’s CEO Daniel Ek expressed his strong dissatisfaction with Apple’s proposed changes to its App Store. He calls it a new low in a scathing post. 

Apple’s decision to introduce new fees under the Digital Markets Act has sparked a public dispute between Spotify and Apple. Ek condemns the iPhone maker’s actions as an attempt to hinder Spotify’s customer acquisition efforts. 

The reason for this clash lies in the announcement that Apple will let developers create and distribute apps on third-party marketplaces. It will happen with the release of iOS 17.4. 

But the changes will exclusively apply to the EU, where Apple is compelled to comply with the DMA, which is a legislative effort aimed at minimizing the dominance of tech giants in the digital economy. 

Daniel Ek’s Criticism 

Daniel Ek is a known critic of Apple especially about the company’s control over the iOS ecosystem. He labeled the proposed changes as a “new low.” 

He accused Apple of acting as if the rules do not apply to them. Daniel criticized the company’s response to the DMA as a “masterclass in distortion.” 

Core Fee 

Under the new app fee, apps with more than one million downloads will have to pay a “core technology fee for every annual install every year.” 

Spotify has more than 100 million downloads in the EU. For Daniel, this fee places the streaming giant in what he describes as an “untenable situation.” He said that the fee is an “extortion, plain and simple.” 

Daniel also expressed concerns about the negative impact on developers, startups, and those that offer free apps. 

Apple’s Response 

Apple issued a statement emphasizing its commitment to support developers including Spotify. It also acknowledges that Spotify is the world’s most successful music streaming app. 

But Apple defended its changes. It stated that it provides developers with more choices for distributing iOS apps and processing payments. It asserted that under the new terms. Over 99% of developers would pay the same or less to Apple. 

The tight control of Apple over its ecosystem has contributed significantly to its revenue. But it also has drawn regulatory scrutiny. Critics said that the company’s tactics stifle innovation and impede new market entrants. 

Daniel Ek, who is a long-time critic of the company’s practices, argues that the recent modifications fall short of creating an “open and fair platform”. He even said that the changes “mock the spirit of the law and the lawmakers who wrote it.” 

The fate of the proposed App Store changes rests on the EU approval. Daniel Ek is still hopeful that the EU recognizes the implications of the modifications. 

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Author: Jane Danes

Jane has a lifelong passion for writing. As a blogger, she loves writing breaking technology news and top headlines about gadgets, content marketing and online entrepreneurship and all things about social media. She also has a slight addiction to pizza and coffee.

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