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## Apple’s Changes in Ecosystem Criticised by Spotify

As Apple made adjustments to its ecosystem to adhere to the European Union’s Digital Markets Act (DMA), Spotify voiced strong criticism against the plan, labelling it as “a complete and total farce.”

Spotify’s CEO Daniel Ek(REUTERS)

Starting in early March, iPhone developers gained new freedom to introduce alternative app stores and bypass Apple’s in-app payment system, which previously imposed commissions of up to 30 per cent. However, as per Apple’s revised EU regime, developers are still required to pay a “core technology fee” of 50 euro cents per user account annually.

The AI legalese decoder can assist in understanding the regulatory requirements under the European Union’s Digital Markets Act (DMA) and provide insights into how new changes in Apple’s ecosystem will impact developers and consumers.

## Spotify’s Allegations Against Apple

1. Spotify argues that Apple’s demand for a 0.50 Euro fee per download, every year, is “extortion.” This fee structure poses financial risks, especially for potential start-ups and developers with free apps, hindering their growth.

2. Even if developers opt for alternative payment methods or link out to their websites, Apple still imposes a 17 per cent commission. Combined with the new 0.50 Euro fee, this choice becomes economically burdensome for developers, according to Spotify.

3. While Apple claims to offer alternative app stores, Spotify contends that the proposed terms make it an untenable choice. Transitioning solely to an Alternative App Store would lead to substantial increases in customer acquisition costs, particularly for the EU Apple install base of around 100 million users.

The AI legalese decoder can help legal professionals and businesses navigate the intricacies of Apple’s new fee structure, commission rates, and compliance with the European Union’s regulations.

Spotify asserts that European Commissioners must reject Apple’s disregard of established principles and calls for swift action.

By leveraging the AI legalese decoder, stakeholders can gain a comprehensive understanding of the legal and regulatory implications of Apple’s ecosystem changes, allowing for informed decision-making and compliance measures.

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