Spotify: Apple’s new changes for DMA would take more from developer’s pockets than ever

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Spotify leads the charge against Apple’s proposed solution to the Digital Markets Act (DMA), calling it a “farce” that stifles competition and innovation. After 5 years of battling Apple’s gatekeeping practices, developers hoped the DMA would level the playing field. Instead, they find themselves facing a new set of challenges.

This comes days after Spotify announced how users could pay and share information about offers freely without being restricted to the App Store in EU.

There is now a €0.50 annual fee per download for all apps called Core Technology Fee, discussed here, including free ones and those with large user bases. 

Adding further complexity to the equation, the existing 17% commission on in-app purchases remains in place for developers offering alternative payment methods within the App Store. This creates a two-tiered system, leaving smaller developers caught between a rock and a hard place: choosing between hefty fees or surrendering a significant portion of their revenue.

Moreover, Spotify estimates that their acquisition costs could increase 10 times if they switch to an alternative app store. The limited reach of alternative stores further hinders developer choice.

Spotify has raised concerns regarding Apple’s new plan that requires developers to choose between the existing system and an impractical alternative. This plan is deemed to go against the DMA’s objective of promoting competition and giving consumers more control. Spotify has urged the European Commission to reject Apple’s plan and ensure that the DMA is implemented as intended.

More here.

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