Spotify Criticizes Apple for 'Extortion' Amid EU App Store Changes

Spotify Criticizes Apple for ‘Extortion’ Amid EU App Store Changes

In a recent post by the CEO of Spotify( a Swedish music streaming service), Daniel EK claimed Apple’s proposed changes were a means of extortion. EK said Apple is making a new plan, a total farce. Under the pretense of compliance and concessions, Apple has made this new plan to loot the developers by charging new fees. 

He even called these charges ahead of the EU DMA misleading and said, “Apple is nothing if not consistent” in his statement. Daniel pointed out Apple’s level of arrogance and criticized the new plan. Moreover, the old tax charged is unacceptable under DMA; thus, the new one is a burden on the shoulders of the developers and mushrooming start-ups. 

What are these new changes?

Apple is introducing a new fee per download every year of 0.5 percent Euro, which will be a sure shot of extortion. 

The main question is, if Apple is also charging a flat 17% commission, then why is there a need for this fee? This news has shaken the entire developers community across the world.

According to this new proposal of Apple, a developer will be required to pay this fee of 0.5% even if the app has been downloaded by a user, not used, and the user has even forgotten to delete it. How will developers pay Apple if its app, which is freely available, gets millions of installations? It is a way to get some extra bucks from developers and new start-ups in the market. 

According to these new rules, if Spotify has to be present in Apple’s app store, it must pay a 0.5% Euro fee per installation per year apart from a commission of 17%. Thus, Daniel remarked these rules are the worst for fetching money from developers. 

Leading Effect of Apple Changes 

Moreover, even if developers remove their apps from the Apple app store, it won’t serve the exact purpose of the apps. Since there are a lot of iOS users, companies won’t be able to attract them if they remove their apps from there. So, eventually, it will lead to an increase in the cost of customer acquisition and make ten times more. 

These changes will bring new controls and disclosures and expand protections to reduce privacy and the security of apps.

But whether this new step will work is just a matter of time. But still, it will affect various developers and entrepreneurs whose apps are available freely for download on the Apple app store.  

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