X owner and Tesla CEO Elon Musk is the fresh name among the top tech CEOs to share his remarks on the latest changes introduced by Apple to comply with the EU's Digital Markets Act (DMA). While the tech giant's press release promised changes such as sideloading, a third-party app marketplace, tweaks for Safari, opening NFC functionality and more, many app developers have sharp reactions to the change. One of them is Spotify.
Daniel Ek, CEO and Founder of Spotify, posted a detailed newsroom post that highlighted the challenges posed to developers by the new policy. Responding to this update, Musk posted that the changes are "very concerning". The compliance will come into effect this year in March. Ek termed Apple's announcement as "vague and misleading".
Spotify Newsroom's post stated that Apple's new plan for compliance is a "complete and total farce". The music streaming service highlighted the "new 0.50 cent Euro fee per download, every year [for] allowing developers to exist on iOS". The company termed it as "extortion" besides the presence of commission in payments during in-app purchases.
Very concerning
— Elon Musk (@elonmusk) January 27, 2024
"From our read of Apple's proposal, a developer would have to pay this fee even if a user downloaded the app, never used it and forgot to delete it," Spotify noted. Moreover, the company stated that the tech giant is charging a "17 per cent rent on developers for existing in the App Store" even if these services use alternative payment methods.
This may imply that the developers might end up paying more than what they paid to Apple in the past in some cases. Spotify noted that even if they remove the app from the App Store, things might not work. Plus, the tax on downloads and updates may increase the customer acquisition costs by up to 10x.
The streaming service noted that the new changes "offers no alternative at all [and] completely negates the goal of the DMA." Concluding a long thread on X, Daniel Ek said: "By inventing a new tax system to replace the old, Apple mocks the spirit of the law and the lawmakers who wrote it. I sincerely hope the EU recognises this for exactly what it is and stands firm, and doesn't let their work over the years all be for nothing."
Very Concerning Elon Musk Reacts On Spotify CEOs Infuriated Sentiments On Apples New DMA-Induced Changes; Details - Jagran English
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