Sarah Bond, president of Microsoft’s Xbox division, has added her voice to the growing chorus of companies calling on Apple to amend its proposed plan for complying with the European Union’s Digital Markets Act (DMA). The DMA passed in 2023 aims to curb the power of large tech companies by forcing them to open their platforms to competition.
Tim Sweeney was among the first to speak up, but many others, like Spotify, have spoken up against Apple’s new plan. Apple’s proposed compliance, unveiled on January 25, includes allowing alternative app stores on iOS devices. However, critics, including Bond, argue that the accompanying conditions render this concession largely meaningless. These conditions include stringent security and quality standards for alternative app stores, a €1 million credit requirement for developers, and a per-install fee for apps downloaded more than a million times.
We’ve also seen the new rules, and it’s hard to say it’s fair. It seems like Apple wants its 30% regardless of where it comes from because it asks a lot from anyone trying to compete with it. Bond’s statement echoes similar concerns raised by other major companies, such as Epic Games and Spotify. Epic CEO Tim Sweeney called Apple’s plan “a devious new instance of malicious compliance,” while Spotify labeled it a “total farce.”
The main argument is that the excessive requirements effectively lock out smaller developers and stifle competition, ultimately benefiting Apple’s own App Store. The European Commission, the EU’s executive body responsible for enforcing the DMA, has not yet issued an official response to Apple’s proposals. However, a Commission spokesperson stated they “strongly encourage designated gatekeepers to test their proposals with third parties,” suggesting potential scrutiny of Apple’s plan.
With the March deadline for DMA compliance looming, Apple faces mounting pressure to revise its approach. Whether the company will heed the calls of Bond and other critics remains to be seen, but it seems like Apple isn’t allowing fair competition without a fight.
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