Well-known developers are not satisfied with Apple's response to DMA violations

Back in June, EU regulators made a preliminary ruling that Apple had violated the Digital Markets Act (DMA) by not allowing app developers to direct users to alternative channels for content and offers. Apple then made some changes that made it easier for developers to direct users to platforms outside of iOS where they can make purchases. But with Apple, there is no “tit” without a “tat,” and that applies here too.

Next fall, developers in the EU will be able to add links that allow iPhone users to make purchases outside of the developers' apps. The new rules say developers can publish and promote offers for purchases available at a destination chosen by the developer. These destinations can include alternative app marketplaces, other apps, or websites. The offers can be accessed outside of the app or in the app via a web view.

So far, so good. But that's where Apple steps in. The company has introduced a new “store service fee” that developers pay for sales of digital goods and services that occur within the first year of the user installing the app. These purchases earn Apple some money, regardless of which platform they were made on, and the user doesn't even have to tap the external link.

In the European Union, where the new DMA law opens up competition between app stores, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users who switch to competing stores and by monitoring commerce on those competing stores.https://t.co/YUYwsnrh32pic.twitter.com/xAWGkOWPrH

— Tim Sweeney (@TimSweeneyEpic) 8 August 2024

Apple's share of this pie is 20% for apps that are only available on the App Store. Apps listed on third-party app stores are charged 10% plus additional fees. An additional 5% fee is charged on purchases of digital goods and services on any platform within one year of the app's first installation. This initial acquisition fee allows Apple to take a 25% commission on purchases made within one year of downloading the app. While automatic renewals and off-platform purchases are included, subscriptions and automatic renewals purchased before downloading the app are off-limits to Apple.

“We are currently reviewing Apple's deliberately confusing proposal. Apple is once again blatantly disregarding the basic requirements of the Digital Markets Act (DMA). The European Commission has made it clear that charging recurring fees for basic elements such as pricing and linking is unacceptable. We call on the Commission to accelerate its investigation, impose daily fines and enforce the DMA.” – Jeanne Moran, Spotify spokesperson

The tech giant says the value the App Store offers developers by connecting them with EU consumers explains the initial acquisition fee, while the Store service fee “reflects the ongoing services and capabilities Apple provides to developers.” But many high-profile developers disagree like Tim Sweeney, CEO of Epic GamesMusic streamer Spotify, another long-time critic of Apple's App Store fees, also spoke negatively about Apple's DMA revisions.

How will EU regulators react? Stay tuned.

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