Spotify CEO Daniel Ek says new changes to Apple’s App Store are a ‘new low’

by MMC
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After meeting with our legal team to analyze the fine print of Apple’s DMA announcement (it took a while), which is vague and misleading at best, I wanted to share my thoughts. While Apple has been behaving poorly for years, what they did yesterday represents a new low, even

Apple has announced that it will allow developers to create and distribute apps to third-party marketplaces for the first time once iOS 17.4 is released. The changes will only take effect in the EU, which forced Apple to comply with Digital Markets Act — a European law aimed at reducing the influence of technology giants on the digital economy.

While this may seem like a win for app developers since it will open up more distribution channels, many complain that Apple will not only retain control of the third-party marketplaces that end up on its system, but will also charge download fees on these. other markets.

Ek saidApple’s response to the Digital Markets Act is ‘a lesson in distortion’.

Below Apple’s new changes, apps with more than 1 million downloads will have to pay a base technology fee for each first annual installation. This puts an app like Spotify – which Ek says has over 100 million downloads in the EU – in an untenable situation as it increases dramaticallythe cost of acquiring new customers.

In a statement, Spotify described the charges as “pure extortion.” The company indicates the feesThis will likely hurt developers, potential startups, and those offering free apps who might not have the funds to pay Apple, especially if their app suddenly goes viral.

That means even a multibillion-dollar company like Spotify will have to “stick to the status quo” to remain profitable, Ek said.

For its part, Apple said in a statement that it was looking to support developers, including Spotify, which it recognized as the “most successful” music streaming app in the world.

“The changes we’re sharing for apps in the European Union give developers choice, with new options for distributing iOS apps and processing payments,” an Apple spokesperson told Business Insider via email . “Each developer can choose to keep the same terms as today. And under the new terms, more than 99% of developers would pay the same amount or less to Apple.”

While Apple’s tight grip on the iOS ecosystem has allowed it to reap billions in revenue, it has also caused it to run afoul of regulators who say its tactics stifle innovation and suppress new entrants. Ek also is a long-standing critic of Apple’s tactics and previously said the company still has a way to go before becoming an “open and fair platform.”

The change to Apple’s App Store not only fails to live up to that ideal, but “mocks the spirit of the law and the lawmakers who wrote it,” Ek said.

The good news for him is that Apple’s new changes won’t be set in stone until they are approved by the EU. And Ek said he hoped the EU would “recognize this exactly for what it is, stand firm and not let its work over the years be wasted.”

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