Spotify terms Apple's compliance of EU regulations 'farce'

Spotify says it would have to pay 17% commission if it stays in App Store and offers its own in-app payment under new terms
The image shows a 3D-rendered logo of Spotify. — Pixabay
The image shows a 3D-rendered logo of Spotify. — Pixabay

Spotify said Apple's compliance to European Union's Digital Markets Act (DMA) is "a complete and total farce."

The fierce remarks of the music streaming giant came in response to the iPhone maker's plan to offer an "alternative app marketplace" on iPhones.

To abide by and fulfill the requirements sought under a new EU law — enforced under the DMA — Apple recently announced to allow the iOS app developers to offer their independent, alternative app stores on iPhones.

Read more: Apple to allow 'alternative app marketplace' on iPhone 

"From the beginning, Apple has been clear that they didn't like the idea of abiding by the DMA. So they've formulated an undesirable alternative to the status quo," the music streaming-giant said on Friday, Reuters reported.

However, Apple said, by abiding by the EU laws and granting rivals a ground to indulge in a fair competition, it's allowing iOS app developers to opt out of Apple's in-app payment method that charges commissions of up to 30pc.

Nevertheless, developers will still be obliged to pay a "core technology fee" of 50 euro cents per user account per year under Apple's devised terms for the bloc's new law.

Staying in the App Store and offer our own in-app payment method on the iPhones would still require us to pay a 17pc commission to Apple under the new law.

In a statement emailed to Reuters, Apple said, "Every developer can choose to stay on the same terms in place today. And under the new terms, more than 99pc of developers would pay the same or less to Apple."

An industry chief said the iPhone maker will have to face grave consequences if its App Store amendments will not adhere to new regulations.