- Apple raises US transaction fees
- Spotify criticizes, urges UK
- UK law may limit fees
Apple has imposed up to a 27% increase in additional transaction fees in the United States, a move openly criticized by Spotify.
On Wednesday, Apple announced that app developers could sell products outside its store, provided they continued paying a commission. Spotify deemed this “absurd” and accused Apple of doing anything to protect its profits, urging the British government to prohibit similar levies within its borders.
An inquiry has been made to Apple for comment.
The US corporation enforced these expenses in response to a lengthy legal struggle with Fortnite producer Epic Games.
The court ruled in Apple’s favour on several points but found a violation by prohibiting app developers from disclosing alternative payment methods, such as URLs that bypass Apple’s App Store payment system.
Apple charges its top developers 30%, its smallest 15%, and the remainder 85% no money for this method.
In response, Apple has implemented a new regime in the United States. This lets developers subscribe to services without using its platform but charges up to 27%.
The company stated in court documents that the commission charge complied with the court order and that App Store developers derive value from the services provided by Apple.
The filings stated that all App Store developers, including those with links or icons with calls to action, benefit from Apple’s platform integrity, among other things.
Spotify Urges UK Intervention
In response, Spotify expressed anger, stating that the policy “contradicts” the US court’s intention to promote increased competition.
In a statement, Apple reiterated its commitment to defending profits extracted from consumers and developers through its app store monopoly.
Spotify has criticised Apple’s pricing and accused it of “irrational” internet control in October 2023.
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Currently, Spotify recommends that the UK government intervene.
“The Digital Markets, Competition and Consumer Bill of the UK must cease this pretense, which is essentially a pretension regarding Apple’s fees.”
Spotify implores British legislators to swiftly approve the measure to impede Apple’s adoption of comparable charges, fostering a more innovative and competitive tech sector, benefiting British businesses and consumers.
The government introduced the digital markets law last year to limit the influence of tech giants. The legislation would confer authority on authorities to “consider targeted measures.” This is with regard to app store transactions to preserve competitive and open digital markets.
However, after passing the measure, the spokesperson declined to say whether authorities would intervene in Apple’s case.
“We have no authority to comment on particular cases,” the individual stated.
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