Spotify CEO says Apple’s App Store changes are ‘new low’

Spotify CEO says Apple’s App Store changes are ‘new low’

Spotify CEO Daniel Ek is not happy about the changes Apple intends to make to its app store under the Digital Markets Act.
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  • Spotify CEO Daniel Ek is not happy about it Apple’s proposed App Store changes.
  • According to him, Apple intends to introduce new fees, which will make it difficult for Spotify to win customers.
  • Ek has been a staunch critic of Apple’s strict maintenance of the iOS ecosystem.

The list of executives unhappy with Apple’s new software distribution policies continues to grow.

Spotify CEO Daniel Ek said in an X post on Friday that Apple’s changes are “a new low, even for them.” This came after Spotify released a statement urging the iPhone maker to act as if they “don’t think the rules apply to them.”

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Apple has announced that it will allow developers to create and distribute apps on third-party marketplaces for the first time since releasing iOS 17.4. The changes will only take effect in the EU, forcing Apple to comply with the Digital Markets Act – a European law aimed at limiting tech giants’ control over the digital economy.

While this sounds like a win for app developers as it will open up more channels for distribution, many complain that not only will Apple retain control over what third-party marketplaces end up on its system, but it will also charge a fee for downloads on those apps. other markets.

“Master Class in Distortion”

one said Apple’s response to the Digital Markets Act is a “master class in distortion.”

Under Apple’s new changes, apps with more than one million downloads must pay a “core technology fee” for “every first annual install”. That puts an app like Spotify – which Ek says has more than 100 million downloads in the EU – in a “relevant position” as it grows dramatically cost of acquiring new customers.

In a statement, Spotify described the fee as “extortion, plain and simple.” The company says it’s right It’s likely to hurt developers, would-be startups, and those offering free apps who don’t have the funds to pay Apple — especially if their app suddenly goes viral.

That means even a multibillion-dollar company like Spotify has to “stick to the status quo” to stay profitable, Ek said.

For its part, Apple said it is trying to support developers, including Spotify, which it considers the world’s “most successful” music streaming app.

“The changes we’re sharing for apps in the European Union give developers choice — with new options for distributing iOS apps and processing payments,” an Apple spokesperson told Business Insider via email. “Every developer can choose to stay with the same terms today. And under the new terms, over 99% of developers will pay Apple the same or less.”

While Apple’s tight control over the iOS ecosystem has helped it generate billions in revenue, it has also made its tactics work poorly against regulators who believe it stifles innovation and discourages new entrants. Ek is also a long-time critic of Apple’s tactics, and has previously said the company has a ways to go before becoming an “open and fair platform.”

Not only does Apple’s App Store change fall short of that ideal, it “makes a mockery of the spirit of the law and the lawmakers who wrote it,” Ek said.

The good news for him is that Apple’s new changes are not set in stone until they meet with the EU. And Ek said he hoped the EU would “recognize this for exactly what it is and stand firm and not let their work over the years go to waste”.

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