Apple Faces Backlash Over Revised Compliance Plan for EU's Digital Markets Act

Spotify and Epic Games have expressed strong discontent with Apple’s newly revised compliance plan for the European Union’s Digital Markets Act (DMA). Epic Games CEO Tim Sweeney criticized the revisions as a form of “malicious compliance,” highlighting concerns over what he termed “junk fees.” The European Commission previously deemed Apple’s initial compliance efforts inadequate and is currently scrutinizing the new fee structure, which introduces a Core Technology Fee for developers utilizing Apple’s technology to create mobile applications. Under the latest policy, announced today, developers wishing to link to their websites from within iOS apps can bypass Apple’s DMA rules. However, they will still incur costs, as Apple has replaced the Core Technology Fee with two new charges: an “Initial Acquisition Fee” and a “Store Services Fee.” The Initial Acquisition Fee acts as a commission for connecting users to the app via the App Store for the first year, while the Store Services Fee is a fixed charge for ongoing purchases of digital goods and services. The complexity of these changes has left companies like Spotify uncertain about their implications. In a statement, Spotify condemned the revisions, asserting that Apple’s fees could reach as high as 25% for basic user communication, which they believe undermines the DMA's fundamental requirements. The company urged the European Commission to expedite its investigation and impose daily fines on Apple for non-compliance. Epic Games, known for its legal battles against app store monopolies, echoed these sentiments, labeling the new fees as unlawful. Sweeney emphasized that despite the DMA's intent to foster competition, Apple continues to impose what he describes as illegal fees on users transitioning to competing app stores.