Xbox president thinks Apple’s EU App Store plan is ‘a step in the wrong direction’

Apple recently announced changes to the App Store to comply with the European Union’s Digital Markets Act (DMA), which came into full effect on March 7. Critics of the company quickly condemned his plans and requirements for alternative app stores, Spotify calls the changes a “total farce”. Microsoft’s Xbox is one of the latest companies to call out Apple’s compatibility plans. In response to Spotify CEO Daniel Ek’s post on X about the changes at Apple, Xbox President Sarah Bond he said The company’s new policy is a “step in the wrong direction” and it hopes to listen to feedback to create a “more inclusive future for all.”

Under DMA rules, platform owners such as Apple and Google they should open their systems to competing app stores. Apple, however, requires these alternative app stores to have strict rules and moderation tools comparable to its own. Their operators must also be able to prove that they have access to a minimum of $1.1 million in credit that they can use to pay developers. Apple also has a new rule for developers, requiring them to pay a basic technology fee of €0.50 (about 54 cents) per install once an app reaches 1 million downloads in a year. This rule applies regardless of whether the app is distributed through Apple’s App Store or an alternative marketplace.

Epic Games CEO Tim Sweeney said Apple’s plan is “an insidious new example of Malicious Compliance.” He added that Apple is essentially forcing developers to choose between App Store exclusivity and a new “widespread illegal anti-competitive scheme with new unnecessary fees on downloads” as well as new taxes on payments the company itself doesn’t process. The App Store is a huge business for Apple, taking 15-30 percent commission on developers’ earnings. For example, for fiscal year 2022, Apple said the App Store ecosystem “made it easy $1.1 trillion in developer accounts and sales.”

Epic was taken Fortnite from the App Store in 2020 after deliberately breaking its rules and offering discounts to players who make purchases outside the Apple ecosystem. Recently, the developer announced that brings Fortnite Come back to iPhone and iPad in Europe this year after DMA takes effect and launches its own store for iOS. “Spotify”, which has also criticized Apple, is planning to launch it its own in-app payment system Also for iOS users in Europe.

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