Microsoft latest to weigh in on Apple's EU App Store rules with disapproval
A Microsoft executive calls Apple's new EU policy to comply with the DMA "a step in the wrong direction."
Microsoft
The Digital Markets Act goes into effect in March, and Apple has released its plans for how it will comply with the EU law to much condemnation. Apple will enable apps to be installed from external sources at reduced commissions, but they will be subject to a Core Technology Fee.
According to an X post first discovered by The Verge, Xbox president Sarah Bond has joined in condemning Apple's proposed App Store changes. She says it is a "step in the wrong direction" and hopes "they listen to feedback."
We believe constructive conversations drive change and progress towards open platforms and greater competition. Apple's new policy is a step in the wrong direction. We hope they listen to feedback on their proposed plan and work towards a more inclusive future for all. https://t.co/mDRI5KPJf6
-- BondSarahBond (@BondSarah_Bond)
These comments arrived despite Microsoft's reliance on a 30% commission on games. The company lets app developers keep 100% of revenue made from sales via the Microsoft Store, unless its a game.
Microsoft isn't the only company with executives sounding off against Apple's proposed changes, though with less acidity. Epic Games' CEO Tim Sweeney called the plan "hot garbage" while Spotify CEO Daniel Ek called it "extortion."
Specifically, Apple will allow developers to offer third-party app stores in the EU, but they will have to be individually approved and use a human review process. Commissions are reduced to 17% for apps sold outside of the app store, but those apps will also owe a Core Technology Fee of 0.50 Euro per first-install of an app that's waived until 1 million installs.
The EU will announce whether Apple's proposals are enough to satisfy the DMA's requirements after reviews begin March 7. Apple will be the target of "strong action" if it hasn't fully complied with the EU's measure.
Read on AppleInsider
Comments
M$ doesn’t want to pay the core tech fee because it would mean it has to pay for those free downloads that businesses are paying hefty per-user fees for AKA “licenses”. Apple doesn't get a penny for hosting those downloads.
Serious, this is huge, first the EU demotes the European monarchies, changes most of the currency, lately they are trying to extort American companies... and the EU Dictators could care less...
How? just keep making stuff/penalties up!
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If this is part of Apple's plan to make the Vision Pro a success, then the company has completely lost the plot IMO, and those here praising them for being obstinate when dealing with the new EU rules have put little thought into their comments. It's not only a bad look for Apple in general, but shooting themselves in the foot when trying to build out a vibrant Vision Pro ecosystem. Alienating them when their support of a new product line is needed is hardly a smart move.
Developers may be practicing malicious compliance with Vision Pro...
Spotify and Epic have no real competitive issues with Apple. 1% of iOS subscribers for Spotify are subject to the 15% commission. The other 99% are subject to 0% since they paid online. Spotify also has a 30% global share for music streaming while Apple is effectively tied with Amazon and Tencent at around 13-14%. Epic ported Fortnite to mobile to make some extra cash. The game was developed for consoles and Windows PCs and that's where Epic got 85% of their revenue. Epic was also perfectly fine with paying a 30% commission on consoles which was their #1 revenue source.
https://newsroom.spotify.com/2024-01-24/the-dma-means-a-better-spotify-for-artists-creators-and-you/
Yes, just like Apple there will be a certain amount of spin.
That aside, you do not need to have competitive issues to file a complaint. Just believing a complaint is justified is enough.
Apple won't do that, what Apple will do is design around them don't poke the bear.......
I'm sure Epic wasn't fine with it but they had no chance of winning in Japan, and Sony and Nintendo approach puts anyone (developer) who wishes to publish on their platform thru a rigorous job interview (with the finished game to boot) where there isn't any doubt what the terms are up front, there is no I didn't understand later on in court. That was partially Apple mistake hindsight 20/20. Sony also laid out the cost and didn't make it look like it was free and they also didn't make seem like everyone can join up because it felt good (its my right not a privilege) which Apple and Google did with their ecosystems.
Any new ecosystem created in the future by Apple (like the Apple Vision) had better take the its a privilege not a right to be here the Gold Rush/Wild West is now over.
and...
Sure, the EU should protect the near profitless Monster of digital music from Apple...
Oh wait, there can only be hardware gatekeepers in the EU...
I'm not going to defend Spotify and I know a lot of artists complain about it but both artists and consumers have plenty of routes to do business outside the reach of the service.