Spotify denounces Apple's compliance with EU DMA as ‘extortion’

Rules do not apply to Apple: Responding to Apple's recent announcement detailing its compliance with the EU's Digital Markets Act (DMA), Spotify has issued a strong critique, labelling the new fees imposed on developers as ‘extortion.’ The streaming music giant also criticised Apple's compliance plan, calling it a ‘complete and total farce,’ accusing the tech giant of believing that the rules do not apply to them.

Earlier this week, Apple unveiled a series of changes purportedly aligning with the EU law, but Spotify, along with Epic Games, expressed dissatisfaction, deeming it a case of ‘malicious compliance’ filled with what they referred to as ‘junk fees.’

Apple's adjustments include reduced commissions for app developers in the EU. However, a new ‘core technology fee’ of €0.50 for each first annual install per year over a 1 million threshold, and a 3 per cent payment processing fee for in-app payments using Apple's system, have drawn criticism. Epic Games CEO Tim Sweeney previously condemned these changes as ‘malicious compliance’ and ‘junk fees,’ sentiments echoed by Spotify.

Spotify CEO Daniel Ek, in a blog post and tweets, characterised Apple's DMA announcement as ‘vague and misleading’ and a ‘new low for the company.’ He accused Apple of presenting a distorted choice for app developers, where sticking to current terms or adopting a seemingly attractive but convoluted new model could result in higher fees.

Ek pointed out that the new system imposes a tax on every new download and update annually for apps with tens or hundreds of millions of EU users, affecting larger apps like WhatsApp, Duolingo, and Pinterest, as well as Spotify itself. This, according to Ek, appears designed to discourage alternative distribution channels like sideloading or alternative app stores, further consolidating Apple's App Store dominance.

For Spotify, the increased fees make sticking with the current system the only viable option, despite their long-standing opposition to it. Ek concluded with a challenge to lawmakers, urging them to recognize Apple's actions, stand firm, and not let years of regulatory work be in vain.

This follows condemnation from both Epic Games and the Coalition for App Fairness (CAF), with CAF declaring that Apple's new fees violate the law and do not enhance competition or fairness in the digital market. Mozilla has also voiced opposition to Apple's new browser rules, describing them as ‘as painful as possible.’

In response to Spotify's statements, Apple defended its changes, underlining that the adjustments provide developers with choice and asserting that more than 99 per cent of developers would pay the same or less under the new terms.