Spotify CEO Criticizes Apple’s App Store Changes

Daniel Ek, the chief executive officer of Spotify, has expressed dissatisfaction with Apple’s proposed modifications to its App Store policies. Ek described Apple’s actions as a “new low,” suggesting that the tech giant is disregarding established rules.

Background

Apple recently announced plans to allow developers to distribute apps through third-party marketplaces, a move prompted by regulatory pressure from the European Union (EU). While this decision appears to offer more opportunities for app distribution, developers like Ek are concerned about Apple’s continued control over these marketplaces and the imposition of new fees.

Criticism from Daniel Ek

Ek criticized Apple’s response to the Digital Markets Act, labeling it as “a masterclass in distortion.” He highlighted the introduction of a “core technology fee” for apps with over one million downloads, stating that it places companies like Spotify in a challenging position by increasing customer acquisition costs significantly.

Spotify’s Response

Spotify denounced the fee as “extortion,” expressing concerns that it would disproportionately impact developers, startups, and providers of free apps. Ek emphasized that even established companies like Spotify would struggle to adapt to these changes without compromising profitability.

Apple’s Perspective

In response, Apple defended its actions, asserting that the proposed changes aim to provide developers with more options for distributing iOS apps and processing payments. A spokesperson for Apple emphasized that the majority of developers would not experience a significant increase in costs under the new terms.

Implications and Controversy

Apple’s dominance over the iOS ecosystem has attracted criticism from regulators and industry players like Ek, who argue that it stifles competition and innovation. Ek emphasized that Apple’s approach undermines the principles of openness and fairness in platform governance.

Conclusion

While Apple’s proposed changes are not finalized and require approval from EU regulators, Ek remains hopeful that the EU will uphold the integrity of its regulations. He urged regulators to scrutinize Apple’s actions and ensure that they align with the spirit of existing laws aimed at promoting a fair and competitive digital marketplace.