In a very recent article we told you what the DMA (Digital Markets Act) is, which will come into force on March 7, and what changes for six big tech companies defined as gatekeepers.
Nevertheless one of these six big tech companies, Apple, appears not to respect the DMA. At least according to what Spotify, Epic and 32 other companies said, which openly criticized the Cupertino company, via a letter sent to the European Commission. And published last March 1st on the blog (or rather on the newsroom) of the Swedish music streaming company.
In the meantime, let’s remember what Digital Markets is, and why it particularly affects gatekeepers. After that we will focus on the accusations made against Apple by Spotify, Epic and 32 other companies.
What is DMA
In short, The Digital Markets Act is a European Union law that aims to regulate large tech platforms. And to limit its excessive power, with the aim of promoting plurality in the digital market.
The law was formally adopted by the European Parliament on 5 July 2022 and by the Council on 18 July 2022, and entered into force on 1 November of the same year.
And it will apply to six companies identified by the European Commission as gatekeepers.
I gatekeeper
The six gatekeepers identified by the EU Commission are Meta, Alphabet (which controls Google), Amazon, ByteDance (parent company of TikTok), Apple and Microsoft.
A company with annual revenues equal to or greater than 7.5 billion euros in the last 3 years, or a total market share value of at least 7.5 billion in the last year, in at least three EU countries is considered a gatekeeper. European.
Another binding parameter is the provision of a “main platform” service, with at least 45 million end users per month residing in the EU. Furthermore, on an annual basis it must be able to count on a minimum of 10,000 active commercial users.
Spotify and Epic against Apple: it does not respect the DMA
The open letter sent to the EU Commission (and more precisely to Margrethe Vestager, European Commissioner for Competition, and Thierry Breton, European Commissioner for the Internal Market) was signed by 34 companies and associations. As already mentioned, the names of Spotify and Epic Games stand out.
The signatories say they are concerned that Apple appears to ignore the rules of the Digital Markets Act. “Apple’s new terms not only ignore both the spirit and letter of the law but, if left unchanged, make a mockery of the DMA and the considerable efforts of the European Commission and EU institutions to make digital markets competitive.”
The accusations
Spotify, Epic Games and the other signatories speak of a “myriad” of Apple decisions that do not comply with the DMA. After which they cite some as examples.
The main one is that developers will be able to choose whether to remain in the App Store or not, but in the latter case they will have to pay significant commissions. “These fees will dissuade app developers from providing seamless in-app experiences to consumers and will hinder fair competition with potential alternative payment providers.”
Then there is the problem of privacy. The letter reads that according to Apple, “the changes include new controls and disclosures and expanded protections to reduce the privacy and security risks created by the DMA.” And this according to the signatories “is masking unfounded concerns about privacy and security to the detriment of user choice. Apple’s approach will only mislead and degrade the user experience, depriving them of real choice and the benefits of DMA.”
The Epic-Apple clash
We remember that the ongoing controversy follows the one that arose at the end of the long-standing dispute between Apple and Epic Games.
After the Supreme Court of the United States, rejecting the appeals of both companies, ruled that Apple should have opened up to external payments, Tim Cook’s company immediately adapted. But introducing a series of obstacles for developers who choose external payments.
Epic had protested, and the first company to come to his rescue was Spotify itself. Who said: “Once again Apple has demonstrated that it will stop at nothing to protect its profits, to the detriment of developers and consumers under the monopoly regime of its app store.
The latest move in the US to impose a 27% fee for transactions outside of an app on a developer’s website is outrageous to the Court’s efforts to enable more competition and ensure freedom of choice on the part of users”.
