Apple released its plans on how it will comply with the Digital Markets Act (DMA) in March, and major companies quickly voiced their concerns the implementation will hurt competitors more than help them.
Epic Games CEO Tim Sweeney called the plan “hot garbage,” Spotify CEO Danel Ek called it “extortion,” and today, Xbox President Sarah Bond joined the criticism, saying the new policy is a step in the wrong direction.
We believe constructive conversations drive change and progress towards open platforms and greater competition. Apple’s new policy is a step in the wrong direction. We hope they listen to feedback on their proposed plan and work towards a more inclusive future for all. https://t.co/mDRI5KPJf6
— BondSarahBond (@BondSarah_Bond) January 29, 2024
Apple agreed to allow third-party app stores on its mobile devices sold in the EU, but they will have to be approved with a human review process. Commissions are reduced to 17% for apps sold out of the App Store, but developers will still have to pay €0.50 at the first install (after 1 million installs).
Daniel Ek claimed Apple is forcing developers to stay with the status quo as what it offers is no real alternative. Sarah Bond added that constructive conversations drive change and progress towards open platforms and greater competition.
The European Commission will weigh in after the review process of Apple’s steps begins on March 7. The US company is facing “strong action” if it doesn’t comply with requirements, meaning the battle for an open app market is far from over.