Spotify and its founder, Daniel Ek, accuse Apple of distorting the European Union’s Digital Markets Act (DMA) to allow sideloading on its devices. On X/Twitter, Ek claims that Apple has created a distortion to conform to European law. The CEO reports that Apple’s proposal for sideloading forces apps to follow in the App Store.
On January 25, Apple announced that it will authorize the installation of apps outside the App Store starting March 7 but only for European Union member countries. However, big tech has created a system to continue charging developers even if their apps are downloaded through unofficial means. Among the charges is the technology fee, which costs 0.50 € per download or update for apps for apps with more than 1 million downloads.
Spotify unleashes the verb against Apple
Daniel Ek posted several messages on X/Twitter about Apple’s announced sideloading policy. In one of the tweets, Ek states that he remained skeptical when big tech announced that it would comply with the DMA. He also reports that Apple uses its size to be bigger than the law.
“Their reaction to DMA is a masterclass in distortion. Apple presents a ‘simple’ choice: stick with the old terms or accept a complex model that looks attractive on the surface but has the potential to generate even higher fees. Reality check: Apple’s alternative is to give no alternative to some of the most popular apps. It just reforms the old terms and the 30% tax that they wanted to protect.”
— Daniel Ek, CEO of Spotify”
To better explain Ek’s reaction, let’s take a look at other charging points announced by Apple. In addition to the 50-cent fee, the big tech will continue to charge a commission of between 17% and 10% (depending on the type of app) and a 3% fee for each payment made using Apple’s payment system apps installed by sideloading will be able to use the App Store to process purchases.
Ek points out that these billing policies would generate losses for Spotify. The CEO explains that with a base of 100 million users using iOS in the EU, the fees would make the cost of acquiring customers go up tenfold this in the “dream” scenario where they all left the App Store.
Apple does what the law doesn’t prohibit
However, as much as Spotify, Epic, and other big companies complain about these Apple guidelines, the truth is that the DMA gives loopholes for it. The law aims to prevent the creation of monopolies in digital markets, but it does not regulate what the sideloading business model will look like. The DMA, in Article 6(12) states that the conditions need to be fair and this is where Apple, the EU, and the devs will rack their brains.
Ek did not emerge “unscathed” from his statements. In the replies, some users reminded that Spotify’s guidelines aren’t fair either. Among the points raised on X/Twitter is the low amount paid for reproductions and that Spotify keeps 50% of the revenue from ads served during a podcast this form of monetization will end next month.
