Epic Games CEO Tim Sweeney has taken to social media to voice his discontent with Apple's revised fee structure, labeling it as "junk fees." Shortly after Apple updated its fee terms on its website, both Epic Games and Spotify released statements criticizing the new rules. Sweeney shared a screenshot on X, highlighting the changes and arguing that the new terms make it economically unfeasible for developers to distribute their apps.
Alongside the image, Sweeney remarked, “In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores.” This isn't the first time Sweeney has been vocal about Apple's Digital Markets Act (DMA) updates; he also criticized the initial changes introduced earlier in February.
Spotify's Take on Apple's Fee Revisions
Spotify has also expressed dissatisfaction with Apple's revised fee structure for developers in the EU. In a statement to TechCrunch, Spotify indicated that it is currently evaluating Apple's new revisions. However, "at first glance," the company finds them "deliberately confusing." Spotify views Apple's latest rule changes as a blatant disregard for the Digital Markets Act in the European Union.
"We are currently assessing Apple’s deliberately confusing proposal. At first glance, by demanding as much as a 25% fee for basic communication with users, Apple once again blatantly disregards the fundamental requirements of the Digital Markets Act (DMA). The European Commission has made it clear that imposing recurring fees on basic elements like pricing and linking is unacceptable. We call on the Commission to expedite its investigation, implement daily fines and enforce the DMA," reads Spotify’s statement to TechCrunch.
Understanding Apple's Revised Fee Structure
According to Apple's new DMA business terms, the Core Technology Fee (CTF) remains intact. Developers are required to pay €0.50 for each first annual install per year over a million threshold. The CTF grants developers access to over 250,000 APIs, TestFlight, Xcode, and more. Notably, Apple has divided the previous commission into two new fees in the revised terms.
- Initial Acquisition Fee: Apple will collect 5% of any sales made by a new app during its first year if the app uses links to direct users out of the App Store.
- Store Services Fee: Apple will charge 10% for any sales made by developers on any platform within the 12 months following the app installation.
Both Epic Games and Spotify seem to be looking towards the EU to establish a standard rule regarding sales made outside of the App Store. They hope that the new rule will prevent Apple from collecting any fees on app sales or purchases made through external channels. The industry now waits with bated breath to see how the EU will respond to Apple’s revised fee structure.
