Spotify CEO Calls Apple's New Sideloading App Store Fee A Masterclass In Distortion
One would think that Apple being forced by the European Union (EU) to support sideloading apps and outside payment systems for its App Store would be music to Spotify's ears. Alas, one would be wrong. That's because even though Apple is legally required to comply, it's doing so in a way that is drawing ire from developers, including Spotify.
Apple's stance against sideloading is well documented, with even its CEO Tim Cook saying a few years ago that such a thing would essentially nuke security for iPhone users. The EU was not convinced, however, and so now Apple has to make some changes in order to comply with the Digital Markets Act (DMA). While that sounds like a win for developers, the devil is in the details.
In a blog post announcing changes to iOS, Safari, and the App Store in the EU, Apple doubled down on its stance that the new rules put iPhone users at risk. And it's because of the claimed "new risks the DMA poses to EU users" that Apple is introducing some new policies and fees.
"The new options for processing payments and downloading apps on iOS open new avenues for malware, fraud and scams, illicit and harmful content, and other privacy and security threats. That’s why Apple is introducing protections—including Notarization for iOS apps, an authorization for marketplace developers, and disclosures on alternative payments—to reduce risks and deliver the best, most secure experience possible for users in the EU. Even with these safeguards in place, many risks remain," Apple explains.
It's a long blog post, but what's causing controversy are the details Apple outlines in the "New Business Terms for Apps in the EU" section, part of which includes a new 'Core Technology Fee'—Apple is tacking on a €0.50 fee for each annual install per year over a 1 million threshold. According to Apple, less than 1% of developers will end up having to pay this.
On X, Spotify CEO Daniel Ek took umbrage with Apple's blog post and new policies, saying the fine print is "vague and misleading" at best.
"For almost five years—1,782 days—we have been asking the European Commission to take action against Apple. You can imagine my excitement when the DMA was created and passed into law because it was such a progressive step against Apple’s App Store monopoly," Ek stated in the X thread.
Over the course of the thread, Ek accuses Apple of "twisting the situation" and "pretending this has to do with security when their reaction is a masterclass in distortion." He also claims that Apple's revised model could lead to "astronomical" fees, with the example that a free app with tens or hundreds of millions of EU users could face a hefty tax on every download and update annually.
"Spotify itself faces an untenable situation. With our EU Apple install base in the 100 million range, this new tax on downloads and updates could skyrocket our customer acquisition costs, potentially increasing them tenfold. This as we have to pay on every install or update to our free or paid app, even for those who no longer use the service," Ek says.
He also accused Apple of mocking the spirit of the law by inventing a new tax system, among other strong words. As such, Ek says Spotify will stick with the status quo (meaning the old fee system).
It's not just Spotify/Ek that are venting on X, either. Tim Sweeney called Apple's move a "devious new instance of Malicious Compliance," while going on to point out some examples of what he says amount to "hot garbage in Apple's announcement."
You can read Apple's blog post for its own take on the matter, and then let us know in the comments section how you feel about all this, if you're so inclined.
