28, February, 2024
HomeTechnologyEU Industry Chief Warns of Consequences: Apple's App Store Changes Must Comply with Digital Markets Act

EU Industry Chief Warns of Consequences: Apple’s App Store Changes Must Comply with Digital Markets Act

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Apple may be in hot water if its proposed alterations to the App Store fall short of Digital Markets Act compliance, cautions the EU’s industry chief.

Read Also | Apple Adapts to EU Regulations: Developers to Pay Fees for Sideloading Apps

On Friday, Spotify expressed strong disapproval, deeming Apple’s strategy to adhere to the European Union’s Digital Markets Act (DMA) as “a complete and total farce.”

Commencing from early March, developers will gain the ability to introduce alternative app stores on iPhones and opt out of Apple’s in-app payment system, which incurs commissions of up to 30 percent, as outlined in the bloc’s new regulations.

Nevertheless, under Apple’s updated EU regime, developers will still be obligated to pay a “core technology fee” amounting to EUR 50 (approximately Rs. 4,500) per user account per year.

In response to Apple’s approach to the DMA, the music streaming giant remarked, “From the beginning, Apple has been clear that they didn’t like the idea of abiding by the DMA. So they’ve formulated an undesirable alternative to the status quo.”

Spotify highlighted that it would face a 17 percent commission if it chooses to remain in the App Store and implement its own in-app payment under the new terms.

Apple defended its stance, stating, “Every developer can choose to stay on the same terms in place today. And under the new terms, more than 99 percent of developers would pay the same or less to Apple.

Read Also | WhatsApp’s Interoperability Push: Breaking Down Barriers for Cross-Platform Messaging

The bloc’s industry chief exclusively informed Reuters on Friday that Apple could face significant consequences if the changes to its App Store do not align with the incoming regulations.

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