Multiple companies and alliances, including Spotify, Epic Games, 37signals, and Proton, have jointly penned a letter to the European Commission expressing concerns regarding Apple's forthcoming App Store regulations.
Overview of Apple's Changes
Under the European Union's Digital Markets Act (DMA), which Apple must comply with starting March 6th, the signatories argue that the proposed rules not only defy the law's intent but also undermine its essence. Apple's upcoming changes in the EU will permit alternative app stores, sideloading, and third-party payment options.
Critique of Fee Structure
However, these options come with conditions, including a "Core Technology Fee" requiring developers to pay 50 euro cents for each annual app installation after the first million downloads. The letter criticizes this fee structure, stating it appears designed to perpetuate Apple's dominance over developers and may stifle competition and alternative payment methods.
Dilemma for Developers
Developers who opt to adhere to Apple's existing terms will avoid the new fee but forfeit the ability to distribute their apps through alternate app stores. This dilemma, as outlined in the letter, presents developers with an untenable choice, neither of which complies with DMA regulations and both of which reinforce Apple's control over digital markets.
Hindrance to Competition
The letter further asserts that Apple's new terms hinder sideloading and make it challenging, risky, and financially unattractive for developers to utilize alternate app stores. Rather than fostering healthy competition and providing consumers with more options, the signatories argue that Apple's changes will erect additional barriers and strengthen its grip on the iPhone ecosystem.
Call to Action
The letter calls upon the European Commission to intervene and ensure that the DMA maintains its credibility and fosters competitive digital markets.