Apple's "Compromise" Sparks Developer Outrage: The Hidden Fees of DMA

Apple's "Compromise" Sparks Developer Outrage: The Hidden Fees of DMAApple's recent response to the European Union's Digital Markets Act (DMA) has sparked intense outrage among developers. While Apple has made seemingly positive concessions, allowing developers to add links within apps directing users to purchase from other platforms, developers have discovered that Apple's "compromise" hides new fee traps

Apple's "Compromise" Sparks Developer Outrage: The Hidden Fees of DMA

Apple's recent response to the European Union's Digital Markets Act (DMA) has sparked intense outrage among developers. While Apple has made seemingly positive concessions, allowing developers to add links within apps directing users to purchase from other platforms, developers have discovered that Apple's "compromise" hides new fee traps.

A Superficial Concession: The "Freedom" of In-App Links

Starting this fall, developers in the EU will have the ability to include links within their apps, directing users to purchase from alternative platforms like other app stores, developer websites, or other apps. These links can be accessed via external websites or web views within the app. On the surface, this appears to be a positive response to the DMA, granting developers greater freedom.

Hidden Traps: Store Service Fees and Double-Dipping

However, Apple has implemented a new fee trap behind this seemingly "free" concessionthe "Store Service Fee." This new fee mandates that developers pay Apple a percentage of revenue for the first year after a user installs their app, regardless of whether the user purchases products within the app or on other platforms.

Fee Structure: Multi-Layered Charges, Maximizing Profits

Apple's fee structure is as follows:

• Apps exclusively listed on the App Store: 20% commission.

• Apps listed on third-party app stores: 10% commission plus additional fees.

• Purchases of digital goods and services on any platform within one year of app installation: An additional 5% fee.

This means that even if a user purchases products from a developer's own website or other app store, Apple will still take a cut, even for purchases made on Windows computers. Furthermore, if users reinstall or update the app, this one-year fee period restarts, allowing Apple to collect revenue from developers and users indefinitely.

Developers Voice Strong Protest: Apple Violates DMA Spirit

Many prominent developers have expressed their strong dissatisfaction with Apple's fee model. Jeanne Moran, a Spotify spokesperson, stated, Apple is once again flagrantly disregarding the fundamental requirements of the Digital Markets Act. The European Commission has made it clear that double-dipping on basic elements like pricing and links is unacceptable.

Epic Games CEO Tim Sweeney also asserted that Apple's fee model completely violates the spirit of the DMA, which aims to protect developers and users, not generate more profits for Apple. He believes that Apple's "Store Service Fee" is essentially a tax designed to restrict developers from operating on other platforms and solidify its monopoly in the app market.

Apple's Defense: App Store Provides Value, Justifying Fees

Apple argues that the App Store provides value for developers by helping them connect with EU consumers and therefore justifies charging an initial acquisition fee. The Store Service Fee, they claim, reflects the ongoing services and features Apple provides to developers, such as security, privacy, updates, and user support.

EU Regulators Respond: The Debate Continues

The EU's response to this ongoing controversy is closely watched. Developers hope that the European Commission will crack down on Apple's fee model, protect developer and user interests, and genuinely achieve the goals of the DMA.

The heart of this dispute lies in Apple's interpretation of the DMA and whether its actions adhere to the principles of "fair competition." The EU regulator's ultimate decision will have a significant impact on Apple's future development and the broader app market ecosystem.

Conclusion:

Apple's response to the DMA has sparked discontent among developers and users, with its "Store Service Fee" being perceived as a fee trap that violates the DMA spirit. Developers are urging EU regulators to intervene, ensure that DMA enforcement truly safeguards developer and user interests, and promotes a fair and competitive market environment.