In a recent statement, Xbox President Sarah Bond expressed concern over Apple’s proposed changes to its App Store in the European Union, describing them as “a step in the wrong direction.” This criticism comes amid a broader discussion within the tech industry regarding Apple’s compliance with the EU’s Digital Markets Act (DMA).
Key Highlights:
- Xbox President Sarah Bond criticizes Apple’s EU App Store plans.
- New policies include a Core Technology Fee for apps exceeding 1 million downloads.
- The changes are seen as a response to the EU’s Digital Markets Act.
- Epic Games CEO Tim Sweeney also criticizes Apple’s new scheme.
- The App Store is a significant revenue stream for Apple.
Background of Apple’s EU App Store Changes
Under the DMA rules, major platform owners like Apple are required to open up their systems to competing app stores. Apple’s response includes a Core Technology Fee of €0.50 per install after an app reaches a 1 million download threshold within a year. This fee applies irrespective of whether the app is distributed through Apple’s App Store or an alternative marketplace.
Industry Response to Apple’s New Policy
Sarah Bond’s critique highlights a growing concern within the tech community about Apple’s approach to the DMA. Bond emphasizes the need for more inclusive and open platform policies. Her statement reflects a broader industry perspective that questions the effectiveness of Apple’s new regulations in fostering competition and innovation.
Epic Games’ Stance on Apple’s Plan
Epic Games CEO Tim Sweeney has also voiced his disagreement, labeling Apple’s plan as “malicious compliance.” Sweeney argues that Apple is imposing unfair fees and taxes, especially on transactions not processed by the company. This criticism is particularly poignant, considering Epic Games’ history with Apple, including the removal and recent return of Fortnite to the App Store in Europe.
The Financial Impact of the App Store
Apple’s App Store is a vital part of its business model, generating substantial revenue through commissions ranging from 15 to 30 percent on developer earnings. For instance, in the fiscal year 2022, the App Store facilitated $1.1 trillion in developer billings and sales. The new fees and policies could significantly impact this revenue stream and the broader app marketplace.
Summary
In conclusion, the Xbox President’s criticism of Apple’s new EU App Store policies reflects a growing concern in the tech industry about the potential negative impact of these changes. These policies, intended to comply with the EU’s DMA, are seen by some as restrictive and contrary to the goal of fostering a more open and competitive digital marketplace. The criticism from high-profile industry figures like Sarah Bond and Tim Sweeney underscores the significance of this issue and the need for ongoing dialogue and policy refinement.
