Apple’s revised DMA plan slammed by Epic Games

Apple’s newly revised compliance plan for the European Union’s Digital Markets Act (DMA) hasn’t gone down well, with Epic Games branding it “uneconomical.”

On Tuesday (August 6) Apple shared the updated version which included two additional fees but had loosened restrictions. This comes after the European Commission had already said the iPhone maker’s first attempt at compliance with the DMA had failed.

Now, Apple’s most up-to-date proposal states that developers who want to link out to their website from inside their iOS app do not have to accept the technology giant’s DMA rules. But they still have to pay them.

The two new feeds include the ‘Initial Acquisition Fee’ which is a commission-like payment and the ‘Store Services Fee.’ This is used to fund App Store operations and is charged on a 12-month fixed basis.

Just a few days after the announcement, Epic Games founder and CEO Tim Sweeney took to social media to share his thoughts.

In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores.https://t.co/YUYwsnrh32 pic.twitter.com/xAWGkOWPrH

— Tim Sweeney (@TimSweeneyEpic) August 8, 2024

“In the European Union where the new DMA law opens up app store competition, Apple continues its malicious compliance by imposing an illegal new 15% junk fee on users migrating to competing stores and monitor commerce on these competing stores,” he writes in a thread.

“Apple’s terms make it completely uneconomical for developers to distribute their apps through both the Apple App Store and competing iOS app stores, thus denying new app store market entrants any chance of competing and growing organically through better terms.

“Of course, Apple long ago banned Fortnite from the Apple App Store. We remain on track to launch the Epic Games Store on iOS in the European Union soon. If necessary, alone.”

There is an ongoing dispute between Apple and Epic Games which dates back to 2020. It was then that Epic alleged Apple’s practice of charging up to 30% commissions on in-app payments on its native iOS devices contravened US antitrust regulations.

A judge ruled that Apple doesn’t operate as a monopoly and doesn’t need to allow third-party app stores in the States, but the company did have to allow in-app sales outside of its App Store.

Featured Image: Via Ideogram

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