Apple’s Latest Attempt to Crush Competition: New EU App Store Rules are a "Stealthy" Money Grab
In a move that reeks of desperation, Apple has introduced new App Store rules in the EU that appear to give developers more freedom to link to outside purchases – but with a hidden catch. The tech giant has added a restrictive new fee structure that forces developers to pay Apple a commission for sales made across any platform, not just iOS, for as long as they include outside links.
The Fees: A 25% Commission on Your Hard-Earned Money
Starting this fall, developers in the EU will be able to include links that lead to purchases outside their apps. However, once a developer adds external links, Apple places a new "store services fee" on the sale of digital goods and services that occur within one year of the date the user installs the app – on any platform, including alternative app stores or a developer’s website. This means that Apple can take up to a 25% commission on purchases made within one year of installation, including off-platform subscriptions and autorenewals.
Tim Sweeney Weighs In: "Apple’s Terms Make it Completely Uneconomical…"
Epic Games CEO Tim Sweeney has blasted Apple’s new rules, saying that the fees make it "completely uneconomical" for developers to distribute their apps through both the Apple App Store and competing iOS app stores. "Apple’s terms make it completely uneconomical for developers to distribute their apps through both the Apple App Store and competing iOS app stores," Sweeney tweeted. "This is a blatant attempt to suppress competition and maintain Apple’s stranglehold on the market."
Spotify Speaks Out: "Apple’s Proposal is Deliberately Confusing…"
Spotify has also spoken out against Apple’s new rules, calling them "deliberately confusing" and urging the European Commission to expedite its investigation and enforce the Digital Markets Act (DMA). "Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA)," Spotify spokesperson Jeanne Moran said. "We call on the Commission to expedite its investigation, implement daily fines and enforce the DMA."
Apple’s Motives: Avoiding Further Action from the EU
The new fee structure comes as Apple attempts to avoid further action from the EU, which has already fined the company €1.84 billion for preventing music streaming apps like Spotify from displaying cheaper subscription deals outside the App Store. Apple has already made some small changes to its DMA compliance plans after facing criticism from developers and EU regulators earlier this year. However, these changes do not address the core issue of Apple’s restrictive fees and rules.
The Fight is Far from Over
The battle between Apple and the EU over App Store rules and fees is far from over. As the European Commission continues to investigate Apple’s compliance with the DMA, developers and consumers alike will be watching closely to see if Apple will continue to try to squeeze out competition and stifle innovation.
