Spotify CEO Daniel Ek has joined a growing list of executives expressing dissatisfaction with Apple’s new app distribution policies. In a recent statement, Ek criticized Apple’s changes as a “new low,” accusing the tech giant of acting as if rules don’t apply to them.
Apple’s announcement of allowing developers to distribute apps on third-party marketplaces, set to take effect with iOS 17.4, comes as a response to the Digital Markets Act in the EU. This legislation aims to regulate tech giants’ dominance over the digital economy.
While touted as a victory for app developers, many are concerned about Apple’s continued control and fees for downloads on third-party marketplaces. Under the new policy, apps with over one million downloads will face a “core technology fee” for each first annual install, posing financial challenges for developers like Spotify.
Spotify CEO Ek described Apple’s response as “a masterclass in distortion,” highlighting the increased costs for acquiring new customers. With over 100 million downloads in the EU, Spotify faces significant financial burdens, potentially hindering innovation and startup growth.
After sitting with our legal team to parse through the fine print of Apple's DMA announcement (that took a while), which is, at best vague and misleading, I wanted to share my thoughts.
— Daniel Ek (@eldsjal) January 26, 2024
While Apple has behaved badly for years, what they did yesterday represents a new low, even…
Spotify labeled the fee “extortion,” expressing concerns about its impact on developers and free apps that may not afford the fees, even if their app gains popularity. In response, Apple defended its changes, stating they offer developers choice and maintain fairness. However, critics argue that Apple’s tight control over the iOS ecosystem stifles competition and innovation.
Spotify CEO emphasized that Apple’s changes fail to create an open and fair platform, mocking the spirit of regulatory efforts. He urged the EU to stand firm against Apple’s policies, emphasizing the importance of regulatory oversight in ensuring fairness and innovation.
The fate of Apple’s new policies rests on approval from EU regulators. Ek remains hopeful that regulators will uphold the principles of fairness and competition, signaling a potential clash between tech giants and regulatory authorities.
As tensions escalate between Apple and developers like Spotify, the outcome of regulatory scrutiny will shape the future landscape of app distribution and competition in the digital marketplace.
