- Written by Tom Gerkin
- Technology reporter
Image source, Getty Images
Spotify has launched a vocal attack on Apple’s new 27% transaction fees in the US.
Apple announced Wednesday that it will allow app developers to sell products in places other than its own store, but only if they still pay a commission.
Spotify said this was “outrageous” and accused Apple of “stopping at nothing” to protect its profits. It urges the British government to prevent similar fees from being imposed in the United Kingdom.
Apple has been contacted for comment.
The company filed the fee in the US as a result of a long-running legal battle with Fortnite developer Epic Games.
The court has ruled in Apple’s favor in multiple cases, but it breaks the law by not allowing app developers to tell people other ways to pay, including through links that bypass Apple’s App Store payment system.
Apple charges the largest developers 30% to use this system, although smaller developers pay about 15%, and 85% of developers pay no fees at all.
As a result of this ruling, Apple introduced a new set of rules in the US that will allow people to sign up for services without using its system, but will charge developers a commission of up to 27% for doing so.
According to court documents filed by the company, it said the commission fees were consistent with the court ruling, adding that App Store developers benefit from Apple’s services.
“All App Store developers — including those who place buttons or links with calls to action in their apps — benefit from (among other things) Apple’s platform integration,” she said in the filings.
It also listed other benefits developers receive, including: “external marketing and advertising, and a safe environment for users to download and purchase apps and in-app content.”
Spotify reacted angrily, saying the policy “contradicts” the US court’s attempt to enable more competition.
She said in a statement: “Once again, Apple has proven that it will stop at nothing to protect the profits it earns at the expense of developers and consumers in light of its monopoly on the App Store.”
Spotify has a history of attacking Apple over its fees. In October 2023, she accused her of having an “insane” level of control over the internet.
Now, she says the UK government must intervene.
“UK Digital Markets, Competition and Consumer Law must put an end to this false position, which is essentially a re-creation of Apple’s charges.
“We strongly urge UK lawmakers to quickly pass the bill to prevent Apple from imposing similar fees, which will help create a more competitive and innovative technology industry for UK consumers and businesses.”
The government introduced the Digital Markets Bill last year with the aim of limiting the power of tech giants.
A government spokesperson told the BBC that the draft law would enable authorities to “consider targeted measures” in relation to app store transactions to maintain open and competitive digital markets.
However, the spokesman declined to say whether the authorities would intervene in the Apple case after the bill was passed.
“It is not our right to comment on specific cases,” this person said.