Apple Faces Backlash Over New Policy Changes in Response to EU's Digital Markets Act

Tech industry leaders criticize Apple's new fee structure and barriers to entry for alternative marketplaces, with the European Commission set to review the proposals in March.

• Apple's new policy changes in response to the EU's Digital Markets Act (DMA) have been met with criticism from tech industry leaders, including Xbox, Spotify, and Epic Games.
• The DMA forced Apple to allow alternative marketplaces to distribute apps on their devices, but Apple's response includes a new fee structure that could potentially make some developers owe more money to Apple than they make.
• Apple's new Core Technology Fee (CTF) charges developers a €0.50 first annual install fee per user after an app receives more than one million installs, regardless of whether the app is distributed through Apple's App Store or an alternative marketplace.
• Alternative marketplaces face a barrier to entry under Apple's new terms, requiring a letter of credit from an A-rated financial institution of €1,000,000 to launch a platform to compete with the App Store.
• The European Commission will review Apple's proposals starting in March, with EU Commissioner for Internal Market Thierry Breton stating that strong action will be taken if the proposed solutions are not good enough.

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