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‘Fortnite’ maker isn’t happy with Apple’s revised DMA rules
Epic CEO Tim Sweeney was quick to criticize Apple’s new fee structure in the EU, calling them “junk fees,” while Spotify said the update is “unacceptable.”
Apple’s initial attempt at following the EU’s Digital Markets Act didn’t pan out, with the EU finding it in breach. So, Apple announced a revision to its terms in an attempt to comply while still maintaining some level of control.
It didn’t take long for some of Apple’s biggest antagonists to take the stage and declare the new rules a violation. Epic CEO Tim Sweeney took to X to air his complaints, calling Apple’s latest adjustments a “junk fee.”
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.https://t.co/YUYwsnrh32 pic.twitter.com/xAWGkOWPrH
— Tim Sweeney (@TimSweeneyEpic) August 8, 2024
A statement shared by Spotify and first covered by TechCrunch shows the company’s own disdain for Apple’s implementation. It sees Apple’s latest rule change as disregarding the DMA.
We are currently assessing Apple’s deliberately confusing proposal,” the company statement reads. “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.”
These comments come after Apple adjusted the fee structure surrounding alternative app stores and external app fees. The Core Technology Fee remains, but the previous commission has been split into two new fees.
The first is an Initial Acquisition Fee, where Apple charges 5% of any purchase made by a new app user for the first year if the app uses links to direct users out of the App Store. The second is a Store Services Fee that is 10% of any sale in the first year.
If the app is re-installed or updated, the year counter restarts.
There are variations to the fee based on whether the developer is being grandfathered into the new rules or if they are part of the small business program. Either way, there is no escaping Apple’s fee structure, even when offering purchases outside of Apple’s domain.
It seems Epic and Spotify expect the EU to rule that Apple must not collect any fee on app sales or purchases made outside of the App Store. Of course, Apple believes it has a stake in these purchases because the user gained access to the app through the App Store.
Epic doesn’t currently operate on the iPhone, though it is planning a third-party store and will distribute Fortnite and other games through other stores like AltStore. Spotify is the most popular music streaming service on earth and currently pays Apple very little, if any money, beyond the $100 developer fee.