Deezer, a streaming music service, is joining Spotify in applauding the €1.84 billion sanction levied by the European Union against Apple for violating antitrust regulations in the streaming music industry. Nevertheless, the organization strongly urges the European Union Commission to evaluate Apple’s reaction to the Digital Markets Act (DMA), claiming that it is “misleading” and “an effort to evade European regulations.”
Jeronimo Folgueira, the CEO of Deezer, cautiously lauded the impending fine in a statement released today, stating, “It is extremely encouraging to see that the EU is taking action against Apple and demonstrating a willingness to firmly sanction anticompetitive practices.”
In light of this new sanction, the streaming music executive also urged the EU Commission to reexamine Apple’s DMA terms to demonstrate that the company’s proposal is insufficient to comply with the new regulation.
The January implementation of Apple’s new DMA rules presents an intricate pathway for application developers seeking to distribute their products from alternative app marketplaces. In conjunction with the modifications to Apple’s regulations and compensation framework, the organization unveiled fresh contractual conditions for developers who opt to operate beyond the confines of Apple’s App Store. Developers who choose to adhere to the DMA terms will be obligated to remit a “Core Technology Fee” of €0.50 per initial annual app install in excess of a one million-app threshold. As opposed to promoting equitable conditions for developers, as the DMA initially intended, this fee guarantees Apple continued access to the profits generated by larger enterprises that function beyond its App Store.
Last week, Deezer was one of several developers who penned an open letter to the EC in which they claimed Apple was “mocking” the DMA. To defend developers, additional signatories included Epic Games, 37signals, Proton, and Spotify, among others, who urged the EC to take “immediate, decisive, and prompt action against Apple.”
In a company blog post that was amended to include commentary on the new fine, the streaming company reiterates its complaints, stating that Apple’s DMA rules are a “attempt to circumvent the new regulation with an alternative to the current business term.” The article highlights that while Apple did decrease its commission, it also implemented a novel charge known as the Core Technology Fee, which is deemed “exorbitant” and “requires prohibitive costs to expand app businesses in a profitable manner.”
Deezer stated that it saw no advantage in adopting Apple’s DMA regulations.
Very few developers have declared their intention to adopt Apple’s new terms in public.
MacPaw is the sole source of information thus far; Setapp, an application subscription service provider, made the announcement last week that it would adopt Apple’s DMA terms. Mobivention, headquartered in Germany, announced today that it will also launch an alternative app marketplace for B2B and B2C iOS applications. Larger developers, including Epic Games and Spotify, in addition to technology companies such as Meta, Mozilla, and Microsoft, have criticized Apple’s new regulations.