Spotify Labels Apple’s Compliance Plan with EU Regulations as a ‘Farce’

In response to Apple’s newly announced plan to adhere to the European Union’s Digital Markets Act (DMA), music streaming giant Spotify has denounced it as “a complete and total farce.” According to the EU’s updated rules, starting from early March, developers can provide alternative app stores on iPhones and opt-out of utilizing Apple’s in-app payment system, which traditionally imposes commissions of up to 30 percent. However, under Apple’s revised EU regime, developers are still obligated to pay a “core technology fee” amounting to EUR 50 per user account per year. Spotify argues that Apple’s approach is an undesirable alternative to the existing status quo, emphasizing the tech giant’s resistance to fully complying with the DMA.

Despite Apple’s assertion that more than 99 percent of developers would either pay the same or less under the new terms, Spotify contends that it would face a 17 percent commission if it opts to stay in the App Store and employs its own in-app payment system. This latest development in the ongoing clash between Spotify and Apple underscores the complexities and tensions arising from the evolving regulatory landscape for digital markets, with potential ramifications for the broader tech industry.