Spotify has expressed its dissatisfaction with Apple’s response to the EU DMA law. The Digital Markets Act (DMA) was created to put an end to unfair stifling of innovation disguised by Apple as security protections. However, Apple has proposed changes that reject the goals of the DMA. Essentially, the old tax was rendered unacceptable under the DMA, so they created a new one masquerading as compliance with the law.

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. This is why many of the most popular developers will never be able to choose it. And for the developers who feel like they have no other alternative, it’s a path that will punish their success. Spotify has called Apple’s new demands “extortion, plain and simple”.

For almost five years – 1,782 days – we have been asking the European Commission to take action against Apple. You can imagine my excitement when the DMA was created and passed into law because it was such a progressive step against Apple’s App Store monopoly.

— Daniel Ek (@eldsjal) January 26, 2024

The DMA is a new law that aims to regulate the behavior of large tech companies in the European Union. The law is designed to prevent companies from using their market power to stifle competition and innovation. Apple has been a vocal opponent of the DMA since it was first proposed. The company has argued that the law is unnecessary and that it will harm innovation in the tech industry. However, the European Union has pushed ahead with the law, and it is now set to go into effect in the coming months.

In Apple’s ‘new’ world, the fees could be astronomical. Picture this: A popular free app with tens or hundreds of millions EU users, now faces a tax on every download and update annually. Imagine the impact on popular apps like WhatsApp, Duolingo, X, and Pinterest, all free to…

— Daniel Ek (@eldsjal) January 26, 2024

Apple’s response to the DMA has been controversial. The company has proposed a new fee structure for app developers that would require them to pay a fee for each new download and update. This fee would be in addition to the commission that Apple already charges developers for sales made through the App Store. Spotify has criticized this new fee structure, calling it “extortion” and “a complete and total farce”. The company argues that the new fees will make it more difficult for developers to compete with Apple and that they will ultimately harm innovation in the tech industry.

So where does that leave us? Under the new terms, we cannot afford these fees if we want to be a profitable company, so our only option is to stick with the status quo. The very thing we’ve been fighting against for five years.

— Daniel Ek (@eldsjal) January 26, 2024

Spotify is not alone in its criticism of Apple’s response to the DMA. Other tech companies, including Epic Games and Match Group, have also spoken out against the new fee structure. These companies argue that the fees are unfair and that they will harm innovation in the tech industry. Some have even suggested that Apple’s response to the DMA is an attempt to maintain its monopoly power in the tech industry.

By inventing a new tax system to replace the old, Apple mocks the spirit of the law and the lawmakers who wrote it. I sincerely hope the EU recognizes this for exactly what it is and stands firm, and doesn’t let their work over the years all be for nothing. The world is watching.

— Daniel Ek (@eldsjal) January 26, 2024

Spotify has expressed its dissatisfaction with Apple’s response to the EU DMA law. The company has criticized Apple’s new fee structure, calling it “extortion” and “a complete and total farce.” Other tech companies have also spoken out against the new fee structure, arguing that it will harm innovation in the tech industry. It remains to be seen how the DMA will be enforced and whether Apple will be forced to change its policies in response.