Microsoft
A Microsoft executive calls Apple’s new EU policy to comply with the DMA “a step in the wrong direction.”
The Digital Markets Act goes into effect in March, and Apple has released its plans for how it will comply with the EU law to much condemnation. Apple will enable apps to be installed from external sources at reduced commissions, but they will be subject to a Core Technology Fee.
According to an X post first discovered by The Verge, Xbox president Sarah Bond has joined in condemning Apple’s proposed App Store changes. She says it is a “step in the wrong direction” and hopes “they listen to feedback.”
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
These comments arrived despite Microsoft’s reliance on a 30% commission on games. The company lets app developers keep 100% of revenue made from sales via the Microsoft Store, unless its a game.
Microsoft isn’t the only company with executives sounding off against Apple’s proposed changes, though with less acidity. Epic Games’ CEO Tim Sweeney called the plan “hot garbage” while Spotify CEO Daniel Ek called it “extortion.”
Specifically, Apple will allow developers to offer third-party app stores in the EU, but they will have to be individually approved and use a human review process. Commissions are reduced to 17% for apps sold outside of the app store, but those apps will also owe a Core Technology Fee of 0.50 Euro per first-install of an app that’s waived until 1 million installs.
The EU will announce whether Apple’s proposals are enough to satisfy the DMA’s requirements after reviews begin March 7. Apple will be the target of “strong action” if it hasn’t fully complied with the EU’s measure.
