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Monday, March 4, 2024

Spotify accuses Apple of ‘extortion’ with new App Retailer tax

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Spotify — one in every of Apple’s greatest critics — says Apple’s new plan to adjust to the European Union’s tech rules is “a whole and complete farce.” In a post published on Spotify’s website, the corporate calls Apple’s new app set up price “extortion, plain and easy” and says Apple is making an attempt to drive builders to not depart its retailer.

The price, which Apple calls the Core Technology Fee, would require builders utilizing third-party app shops to pay €0.50 for every annual app set up after 1 million downloads. Spotify says the brand new tax will damage builders, particularly in the event that they’re providing apps without spending a dime. “From our learn of Apple’s proposal, a developer must pay this price even when a consumer downloaded the app, by no means used it and forgot to delete it,” Spotify writes.

The corporate additionally calls out the 17 p.c fee that Apple will nonetheless take from the builders who select to make use of third-party cost processors. This may make a “developer’s alternative between the established order and this new program as tough as attainable,” Spotify provides. Whereas Spotify revealed plans to roll out its own in-app payment system within the EU this week, it appears unlikely this may pan out.

“Spotify itself faces an untenable state of affairs,” Spotify CEO Daniel Ek writes in a thread on X (previously Twitter). “With our EU Apple set up base within the 100 million vary, this new tax on downloads and updates might skyrocket our buyer acquisition prices, probably growing them tenfold … Underneath the brand new phrases, we can’t afford these charges if we need to be a worthwhile firm, so our solely possibility is to stay with the established order.”

Apple is dealing with a wave of criticism over its new guidelines. Many developers, large and small, are frustrated with the charges they’ll face in the event that they resolve to carry their app outdoors the App Retailer or add an alternate cost possibility. The EU Fee says it’ll issue a response to Apple’s changes when the rules formally go into impact in March — within the meantime, it’ll give builders loads of time to select aside the brand new guidelines.

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