Spotify, one of Apple’s biggest critics, is not pleased with the recent changes in the App Store. Jeanne Moran, a representative of the company, stated to The Verge that the new 27 percent tax on alternative payment methods shows that Apple “will stop at nothing to protect the profits it gains at the expense of developers and users on the App Store monopoly.”
Apple has made changes to the App Store policy in response to a court order issued in the Epic v. Apple case. The change allows developers in the United States to link to alternative payment methods, but only if they pay a 27 percent commission on each purchase made outside of the App Store.
Tim Sweeney, the CEO of Epic Games, was one of the first to criticize Apple’s changes as “anti-competitive,” stating that the App Store policy “completely undermines” the court’s decision. Sweeney also claims that it kills price competition, preventing developers from offering in-app purchases at lower prices. Developers not only have to pay a commission to third-party payment processors but also to Apple.
Reactions from other critics of Apple did not take long to surface. Spotify’s Jeanne Moran argues that Apple’s latest move is “scandalous and contradicts the court’s efforts for increased competition and user choice.” Moran also called on the European Commission to prevent the introduction of similar changes in the EU. The Coalition for App Fairness (CAF), a group founded by Spotify, Epic Games, Tile, and other companies aiming to reduce Apple and Google’s influence on the mobile app industry, also commented on the change. “Apple’s ‘compliance’ approach to the district court’s decision will not benefit developers and users,” said CAF Executive Director Rick VanMeter. “These changes do not affect consumer choice” and do not “lower prices for in-app purchases or introduce competition into Apple’s walled garden.”
Apple has implemented similar policies in other locations, but regulations are not pleased with this move. In 2022, Apple allowed Dutch dating app developers to use alternative payment options with the same 27 percent tax. However, Dutch regulators fined Apple $55 million for non-compliance. Apple has also introduced a similar policy for all app developers in South Korea, where new legislation prohibits Apple and Google from forcing developers to use their own payment processors. South Korea warned both Apple and Google about the possibility of fines for violating the new payment rules.
FAQ:
Q1: What changes did Apple make to the App Store policy?
A1: Apple made changes to the App Store policy in accordance with a court order issued in the Epic v. Apple case. The change allows developers in the United States to link to alternative payment methods, but only if they pay a 27 percent commission on each purchase made outside of the App Store.
Q2: What are Spotify’s reactions to these changes?
A2: Jeanne Moran, a representative of Spotify, believes that Apple’s recent changes are “scandalous” and contradict the court’s efforts for increased competition and user choice. Moran also called on the European Commission to prevent the introduction of similar changes in the EU.
Q3: What are the consequences of these changes for developers?
A3: Developers now have to pay a 27 percent commission to both Apple and third-party payment processors. These changes prevent developers from offering in-app purchases at lower prices and kill price competition.
Q4: What were the reactions of other critics of Apple?
A4: Other critics of Apple, like Jeanne Moran from Spotify, criticized the changes and claim that Apple’s App Store policy will not benefit developers and users. The Coalition for App Fairness also commented on the change, stating that it does not affect consumer choice or introduce competition.
Q5: How was Apple punished for implementing a similar policy in the Netherlands?
A5: Dutch regulators fined Apple $55 million for implementing a similar policy for Dutch dating app developers.