It’s no secret that tensions are particularly high between Apple and Epic Games, the latter publicly criticizing (very often) Apple’s policy in the application distribution sector. Apple announced changes yesterday to comply with the DMA law and avoid a conviction. The Cupertino firm is accused today by Tim Sweeney of “malicious compliance” with the DMA. A new term that we had never seen in Sweeney’s statements!
Malicious conformity, really?
Epic Games CEO Tim Sweeney has been vocal in criticizing Apple’s new pricing structure in Europe overnight. The changes, introduced in response to the Digital Markets Act (DMA), were described by Sweeney as “unnecessary costs” and of “malicious compliance”he accuses Apple of exploiting the new regulations to maintain control over app developers.
The European Union recently deemed Apple’s first attempt to comply with the DMA to have failed. As a result, Apple was forced to announce a revision to its terms. However, the update was met with fierce opposition from major companies like Epic Games and Spotify, who saw it as an unfair approach by the Cupertino company. Spotify called the revision a “totally unacceptable”thus joining the severe criticism issued by Tim Sweeney.
Tim Sweeney
One of the major concerns Sweeney expressed was Apple’s imposition of a “new illegal tax of 15%” to developers using alternative app stores. The post, shared on social network X, reflects growing frustration among developers with what they see as Apple’s attempt to circumvent the spirit of the DMA while continuing to collect substantial fees.
The new fee structure introduced by Apple includes two new types of fees, which have been particularly criticized:
- Initial acquisition costs by 5% : This fee applies to purchases made by a new user of an application during the first year, if this application redirects to external links.
- In-store service fees by 10% : this fee applies to each sale made during the first year of using the application.
Another controversial aspect of this update is the fact that if an app is reinstalled or updated, the one-year period is reset, extending the period during which these fees can be collected. Epic Games and Spotify have expressed hope that the European Union will take a strong stance against these new pricing policies, ruling that Apple should not collect fees on app sales or purchases made outside of the App Store.
In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores. pic.twitter.com/xAWGkOWPrH
— Tim Sweeney (@TimSweeneyEpic) August 8, 2024