In order to comply with the Digital Markets Act (DMA) of the European Union, Apple made adjustments to its ecosystem. Spotify criticized the proposal on Saturday, calling it “a complete and total farce.”
iPhone developers were able to establish alternate app stores and get around Apple’s in-app payment mechanism, which charged up to thirty percent in commissions, starting in early March. Nevertheless, under Apple’s amended EU system, developers are still required to pay an annual “core technology fee” of 50 euro cents per user account.
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“If Apple is not reliable, it is nothing. Even if they have acted inappropriately for years, this degree of haughtiness is unprecedented. They presented a new plan that is an utter farce under the false pretense of compliance and concessions, company stated in a statement and it directly affected on Spotify download and its Spotify premium subscription.
The company said that since the previous tax was essentially made unworkable by the DMA, a new one was made under the guise of legal compliance.
Spotify allegations against on Apple
- They said that Apple’s recent demand that users pay 0.50 euros per download, annually, amounts to “extortion”. This pricing system presents financial risks and might impede growth for developers, particularly for those who are considering starting their own business or have free apps.
- Developers must pay Apple a 17 per cent fee even if they decide to provide other payment options or provide links to their websites, according to Spotify. It also stated that the developer’s decision between the new program and the status quo is difficult and may be financially taxing given the new 0.50 Euro cost and this.
- Spotify stated that the proposed rules made Apple’s promise to provide other app shops unfeasible. According to Spotify, switching to an Alternative App Store alone wouldn’t lessen the financial burden and would even result in significant rises in the cost of acquiring new customers, especially for the roughly 100 million Apple install base in the EU.
They have said, “The responsibility lies with you, European Commissioners, and you need to reject this flagrant disrespect of the very principles you worked so hard to establish once and for all.”
According to the proposal, Apple and Google, a division of Alphabet Inc., would have to facilitate consumers’ ability to download other app stores and change the default programs on their phones.
Apple is being looked into by the Justice Department for possible anti-competitive actions at the same time. Although Ek stated he hasn’t spoken with Justice Department representatives this week, he is “sure we will interact with them in other forms.”
Why Apple rejected Spotify app ?
In a statement, Apple stated that the Spotify app was denied because it did not adhere to the rules prohibiting explicit in-app messaging that urge users to make digital transactions outside of the app. We gave them precise instructions on how to fix the problem, and once they made the necessary adjustments, we approved their app.”
The Open App Markets Act, a piece of legislation, has been sitting in Congress since Schumer decided not to bring it up for a vote last year. This is the reason for Ek’s visit.
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