Spotify — one in every of Apple’s largest critics — says Apple’s new plan to adjust to the European Union’s tech laws is “a complete and total farce.” In a put up printed on Spotify’s web site, the corporate calls Apple’s new app set up charge “extortion, plain and simple” and says Apple is attempting to drive builders to not go away its retailer.
The charge, which Apple calls the Core Know-how Charge, would require builders utilizing third-party app shops to pay €0.50 for every annual app set up after 1 million downloads. Spotify says the brand new tax will damage builders, particularly in the event that they’re providing apps totally free. “From our read of Apple’s proposal, a developer would have to pay this fee even if a user downloaded the app, never used it and forgot to delete it,” Spotify writes.
The corporate additionally calls out the 17 % fee that Apple will nonetheless take from the builders who select to make use of third-party cost processors. It will make a “developer’s choice between the status quo and this new program as difficult as possible,” Spotify provides. Whereas Spotify revealed plans to roll out its personal in-app cost system within the EU this week, it appears unlikely it will pan out.
“Spotify itself faces an untenable situation,” Spotify CEO Daniel Ek writes in a thread on X (previously Twitter). “With our EU Apple install base in the 100 million range, this new tax on downloads and updates could skyrocket our customer acquisition costs, potentially increasing them tenfold … Under the new terms, we cannot afford these fees if we want to be a profitable company, so our only option is to stick with the status quo.”
In a press release to The Verge, Apple spokesperson Fred Sainz says the corporate is “happy to support the success of all developers,” together with Spotify. “The changes we’re sharing for apps in the European Union give developers choice — with new options to distribute iOS apps and process payments,” Sainz says. “Every developer can choose to stay on the same terms in place today. And under the new terms, more than 99% of developers would pay the same or less to Apple.”
Apple is dealing with a wave of criticism over its new guidelines. Many builders, giant and small, are annoyed with the charges they’ll face in the event that they determine to carry their app outdoors the App Retailer or add another cost choice. The EU Fee says it’ll challenge a response to Apple’s modifications when the laws formally go into impact in March — within the meantime, it’ll give builders loads of time to choose aside the brand new guidelines.
Replace January twenty sixth, 6:11PM ET: Added a press release from Apple.