August 9th, 2024

Epic Games and Spotify Say Apple's Latest DMA Changes Are 'Illegal'

Epic Games and Spotify have criticized Apple's updated Digital Markets Act compliance plan, calling its new commission structure excessive. Epic plans to launch its own app store on iOS in the EU.

Read original articleLink Icon
Epic Games and Spotify Say Apple's Latest DMA Changes Are 'Illegal'

Epic Games and Spotify have criticized Apple's recent updates to its Digital Markets Act (DMA) compliance plan in the European Union, labeling the changes as "illegal" and "deliberately confusing." Apple has modified its rules to allow developers to link to external purchase options for in-app content without restrictions. However, the new fee structure, which includes a commission ranging from 10% to 27%, has been deemed complicated and burdensome by both companies. Epic Games' CEO Tim Sweeney described the new 15% commission as a "junk fee" that undermines the viability of distributing apps through both the Apple App Store and competing platforms. Spotify echoed these sentiments, stating that Apple's demands for fees on basic user communications violate the DMA's requirements. Apple defends its fees by arguing they reflect the value of services provided through the App Store. The changes come after the European Commission previously fined Apple for restricting streaming services like Spotify from informing users about cheaper subscription options outside the app. Epic Games plans to launch its own store on iOS in the EU, aiming to charge developers a lower commission than Apple's.

- Epic Games and Spotify criticize Apple's new DMA compliance fees as excessive and confusing.

- Apple allows developers to link to external purchase options but imposes a new commission structure.

- Tim Sweeney calls Apple's 15% fee a "junk fee" that harms app distribution.

- Spotify claims Apple's fees violate the Digital Markets Act's requirements.

- Epic Games plans to launch its own app store on iOS in the EU.

Link Icon 10 comments
By @NotPractical - 5 months
It's not malicious compliance, it's non-compliance. Apple still has 100% control over which apps you can install on your iPhone in the EU. The EU must force Apple to provide EU citizens with some way to bypass mandatory "notarization"[*]. Don't get me wrong, I'm all for scary warning screens -- malicious software does exist and Apple devices should be secure by default. But the DMA is toothless if Apple can "comply" and still have their final say over what EU citizens can and cannot install.

[*] "Notarization" for iOS is a misnomer and imposes a laundry list of requirements in addition to "the app isn't malware". The guidelines aren't even a separate document; they're quite literally a subset of the App Store guidelines (notice the "only notarization requirements" checkbox):

https://developer.apple.com/app-store/review/guidelines/

Compare that to the macOS notarization requirements, which are quite succinct and are anything but a subset of the macOS App Store guidelines: https://developer.apple.com/documentation/security/notarizin...

(macOS of course still allows you run apps that aren't notarized after passing through several scary warning screens.)

These extra unnecessary guidelines, along with the fact that you still need a paid Apple Developer account at $100/year to submit your apps for notarization (even if you just want to use them on your own device and distribute them nowhere), shut out FOSS entirely and render the DMA nearly useless from my point of view.

By @jerojero - 5 months
It does read like malicious compliance.

It kind of sees to me that Apple is doing as much as possible to teeter the line , to see how much they can get away with. It is definitely a burden on the European Union just to make this one company comply; though it has always been this way with Apple. Anyone remembers how USB-C would "hinder innovation" on the iPhones?

I hope the European Union sees through this malicious compliance and gets Apple in line. But honestly, it just shows how monstrously big companies like Apple are. I do think these problems pile up and eventually they're going to be fined a big sum of money for the repeated offenses. We'll see though, maybe they get away with it.

By @exabrial - 5 months
Apple has everything to lose with malicious compliance and nothing to gain. Very short term thinking.

They've already invited enough scrutiny and regulation into their niche.

By @blackeyeblitzar - 5 months
It’s time for the EU to issue unreasonably massive fines against Apple for the malicious compliance and continued anti competitive behavior. And they should issue warrants for the arrest of executives like Cook.
By @snapcaster - 5 months
All these legal battles have me thinking: what is the appropriate amount for someone like apple to charge developers using their app store? It's clearly not 0% since Apple is incurring lots of costs and providing very real benefits for the developers on the platform, but also 30% seems so high that it's hard to justify
By @manofmanysmiles - 5 months
I'd love to see what would happen if the board said "Okay fine, we won't sell anything to anyone in Europe."

I know, unrealistic, but a fun thought experiment.

Walk away from $21B profit on $86B revenue.

https://www.apple.com/newsroom/2024/08/apple-reports-third-q...

By @KolmogorovComp - 5 months
To those wondering about LLM hallucinations, I think a git diff between the raw OCR and after the LLM pass should be very quick to review by a human (assuming formatting changes are done separately).
By @Spivak - 5 months
These lawsuits are such good fun to watch because it's not often a company complies with laws with a developer mindset and it's honestly kind of refreshing. I think this kind of back-and-forth is good because it's laying bare just how ridiculous the DMA actually is as a piece of law. It has good intentions but has to ultimately dance around the fact that the law they wanted would never pass. So they keep trying to legally corner Apple into hitching the wagon they want, significant reduction/elimination of the 30% fee, to the compliance of unrelated related things and Apple is taking full advantage.

It's feels the exact same with the GDPR cookie banner nonsense where actually banning tracking is legally untenable so they tried the shame banner. Except that companies can't feel shame and this affected their revenue so they just added the banner and moved on, and users added the banners to their ad block and moved on.

By @CafeRacer - 5 months
I understand what Apple does is shady, but both Epic and Spotify also shady af. This, coming from Epic and Spotify is the definition of irony.