Spotify and Epic Games have issued statements on the new developer fee structure announced by Apple today.
Following a preliminary ruling by the EU that Apple was in violation of the Digital Markets Act, the company has loosened the rules for external links, but also introduced two new fees on any digital goods and services sold. The first is an Initial Acquisition Fee of 5% that developers must pay for the first 12 months after initial app install. The second is a 10% Store Services Fee that also lasts for 12 months, but that time period resets with each app update or reinstall.
In a statement to TechCrunch, Spotify said:
"We are currently assessing Apple's deliberately confusing proposal. At first glance, by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA). The European Commission has made it clear that imposing recurring fees on basic elements like pricing and linking is unacceptable. We call on the Commission to expedite its investigation, implement daily fines and enforce the DMA."
Epic Games CEO Tim Sweeney, tweeted:
"In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing 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, thus denying new app store market entrants any chance of competing and growing organically through better terms."
"Of course, Apple long ago banned Fortnite from the Apple App Store. We remain on track to launch the Epic Games Store on iOS in the European Union soon. If necessary, alone."
Apple appears determined to take a cut of any sales that can be linked to a user that installs a company's iOS app, requiring that "You'll pay Apple a fee on all sales of digital goods and services, the customer makes on any platform". It's unclear if this plan will be accepted by the European Commission. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates!
Following a preliminary ruling by the EU that Apple was in violation of the Digital Markets Act, the company has loosened the rules for external links, but also introduced two new fees on any digital goods and services sold. The first is an Initial Acquisition Fee of 5% that developers must pay for the first 12 months after initial app install. The second is a 10% Store Services Fee that also lasts for 12 months, but that time period resets with each app update or reinstall.
In a statement to TechCrunch, Spotify said:
"We are currently assessing Apple's deliberately confusing proposal. At first glance, by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA). The European Commission has made it clear that imposing recurring fees on basic elements like pricing and linking is unacceptable. We call on the Commission to expedite its investigation, implement daily fines and enforce the DMA."
Epic Games CEO Tim Sweeney, tweeted:
"In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing 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, thus denying new app store market entrants any chance of competing and growing organically through better terms."
"Of course, Apple long ago banned Fortnite from the Apple App Store. We remain on track to launch the Epic Games Store on iOS in the European Union soon. If necessary, alone."
Apple appears determined to take a cut of any sales that can be linked to a user that installs a company's iOS app, requiring that "You'll pay Apple a fee on all sales of digital goods and services, the customer makes on any platform". It's unclear if this plan will be accepted by the European Commission. Please download the iClarified app or follow iClarified on Twitter, Facebook, YouTube, and RSS for updates!