Streaming music service Deezer is in agreement with Spotify in applauding the European Union’s €1.84 billion fine imposed on Apple for violating antitrust laws in the streaming music industry. Nevertheless, the company is calling on the EU Commission to scrutinize Apple’s reaction to the Digital Markets Act (DMA), denouncing it as “deceptive” and an effort to evade European regulations.
In a statement released today, Deezer CEO Jeronimo Folgueira cautiously praised the imposed fine, stating, “It’s encouraging to see the EU taking action against Apple and displaying readiness to firmly penalize anti-competitive behavior.”
However, the streaming music executive also urged the EU Commission to reevaluate Apple’s DMA terms in light of the recent fine to clarify that Apple’s proposed actions are insufficient to comply with the new regulations.
Apple’s new DMA regulations, introduced in January, offer a convoluted mechanism for app developers to distribute apps from alternative app stores. In addition to altering Apple’s rules and commission structure, the company introduced new business terms for developers opting to use platforms outside of Apple’s App Store. By agreeing to the DMA terms, developers will be subject to a new “Core Technology Fee,” charging them €0.50 for each initial annual app install exceeding a 1 million threshold. Instead of creating a fair environment for developers, as intended by the DMA, this fee ensures that Apple can still benefit from the revenue generated by larger businesses operating independently of its App Store.
Deezer is one of the developers who penned an open letter to the EC last week, accusing Apple of making a “mockery” of the DMA. Other signatories include Epic Games, 37signals, Proton, Spotify, and others, collectively urging the EC to take prompt and resolute action against Apple to safeguard developers.
The streaming company reiterates its grievances in a blog post, updated to address the recent fine, stating that Apple’s DMA regulations are an “endeavor to evade the new regulation with an alternative to the current business terms.” It underscores that while Apple reduced its commission, it introduced a new fee—the Core Technology Fee—that is “exorbitant” and “renders it unreasonably costly to grow an app business profitably.”
Consequently, Deezer stated that it saw no advantage in transitioning to Apple’s DMA regulations.
Only a few developers have publicly indicated a willingness to shift to Apple’s new terms.
As of now, MacPaw, the creator of an app subscription service named Setapp, announced its acceptance of Apple’s DMA terms last week. Today, Germany-based mobivention stated it would also launch an alternative app store for B2B and B2C iOS apps. However, prominent developers like Spotify and Epic Games, as well as tech giants such as Meta, Mozilla, and Microsoft, have criticized Apple’s new policies.
