Xbox president Sarah Bond posted on X (formerly Twitter) that Apple’s new app store policy is “a step in the wrong direction.”
Apple recently detailed changes to its app ecosystem in the European Union (EU). The changes allow users to install apps through third-party app marketplaces. This is to comply with the EU’s Digital Markets Act (DMA), which has a March 6th, 2024, deadline.
Apple faces backlash for a key component of its proposed policy, which charges a new ‘Core Technology Fee’ for developers who want to distribute their iOS apps on third-party app stores in the EU. The fee is €0.50 (about $0.73 CAD) per install per account annually. The fee only applies to developers after 1 million installs; before that, it’s free.
On top of the ‘Core Technology Fee,’ Apple also takes a 17 percent commission from developers with apps in the App Store that offer alternative payment methods or link to their own website for payment.
While Microsoft’s Xbox hopes Apple will “listen to feedback on their proposed plans,” Xbox has its own plans in the mobile space. The company has reportedly been working on an Xbox mobile gaming store that could possibly be released this year. Apple’s proposed policies would affect Microsoft’s ability to operate its marketplace on iOS devices.
We believe constructive conversations drive change and progress towards open platforms and greater competition. Apple's new policy is a step in the wrong direction. We hope they listen to feedback on their proposed plan and work towards a more inclusive future for all. https://t.co/mDRI5KPJf6
— BondSarahBond (@BondSarah_Bond) January 29, 2024
It’s not just the president of Xbox speaking out. Spotify also issued a press release on Apple’s proposed policies in the EU, saying bluntly, “This is extortion, plain and simple.” Spotify thinks Apple’s proposed policies reject the EU’s DMA goals.
“This combination of fees means that, in most instances, if your app is popular, you would pay the same or even more to Apple than under the prior rules,” Spotify stated in its press release, “Apple is making the DMA hurt even more for developers, throwing them an unworkable alternative that will stifle their businesses immediately.”
Epic Games’ CEO Tim Sweeny posted on X calling Apple’s changes “hot garbage” due to Apple proposing what he thinks is “a new also-illegal anticompetitive scheme rife with new Junk Fees on downloads and new Apple taxes on payments they don’t process.”
Apple clearly faces steep opposition to its proposed App Store policies in the EU. Speaking to Reuters, EU industry chief Thierry Breton spoke about Apple’s move: “If the proposed solutions are not good enough, we will not hesitate to take strong action.”
It’s important to note that none of these changes are coming to Canada or the U.S. Apple’s new App Store policy is strictly designed to comply with the EU’s DMA. However, Apple is adding new options for game streaming services, potentially like Xbox Cloud Gaming, to offer a single app on the App Store capable of streaming all the games in its respective catalogue.
Apple will also allow developers in the U.S. to offer alternate payment methods, but the Cupertino-based company is still taking a 27 percent cut. It’s unclear if this will affect the Canadian App Store.
Only time will tell how Apple responds to the criticism it is facing or if the EU will take action on Apple’s proposed changes.
Image credit: Xbox/Apple
Source: @BondSarah_Bond Via: The Verge
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