Spotify calls Apples European plan a farce and blackmail

Spotify calls Apple’s European plan a farce and blackmail

Spotify, one of Apple’s biggest competitors, called The iPhone maker’s proposed plan to meet the requirements of new EU regulations “A complete farce”. And so is the “Core Technology Fee” (CTF), which Apple wants to introduce according to Spotify “Blackmail, naked and simple” – In this way, the company tries to prevent the exodus of developers from its website.

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Apple intends to charge developers a CTF of €0.50 for each additional app install after 1 million downloads per year. Spotify believes the fee will hurt developers, especially those who distribute apps for free. “Based on our reading of Apple’s proposal, the developer would have to pay this fee even if the user downloaded the app, never launched it, and forgot to uninstall it.”says Spotify.

The company also pointed out a 17% commission that Apple plans to charge developers who switch to third-party payment systems – this will significantly complicate the situation “The developer has the choice between the status quo and a new program”. This week Spotify announced plans to launch its own payment system in the EU, but this now looks unlikely to happen. “Spotify itself found itself in an unbearable situation. Considering our download base [на платформе] Given Apple’s population of 100 million in the EU, this new tax on downloads and updates could skyrocket our customer acquisition costs, potentially increasing them tenfold. <..> Under the new conditions we cannot afford these fees if we want to be a profitable company, so our only option is to stay with the status quo.”stated CEO of the company Daniel Ek.

Apple now says the company “I am happy to support the success of all developers”as their representative Fred Sainz put it in a conversation with The edge. “The changes we proposed [рынка] Apps in the EU give developers choice, with new options for iOS app distribution and payment processing. Any developer can decide to stay on the same terms as today. And under the new terms, more than 99% of developers will pay Apple the same or less.”said Fred Sainz. The European Commission has already warned that it is ready to take decisive action against Apple if its proposal proves successful “not good enough”.


About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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