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Microsoft executive calls Apple's new EU DMA compliance policy a “step in the wrong direction.”
The Digital Markets Act comes into force in March and Apple has published its plans to comply with EU legislation, drawing strong condemnation. Apple will allow apps to be installed from external sources at reduced fees, but they will be charged for the underlying technology.
According to a post by X first discovered by The Verge, Xbox President Sarah Bond has joined in condemning Apple's proposed changes to the App Store. She says it's a “step in the wrong direction” and hopes “they listen to the feedback.”
We believe constructive conversations drive change and progress towards open platforms and stronger competition. Apple's new policy is a step in the wrong direction. We hope they will listen to feedback on their proposed plan and work to create a more inclusive future for everyone. https://t.co/mDRI5KPJf6
— BondSarahBond (@BondSarah_Bond) January 29, 2024
These comments came despite Microsoft relying on a 30% commission on games. The company allows app developers to keep 100% of revenue from sales through the Microsoft Store, excluding games.
Microsoft is not the only company whose executives are speaking out against Apple's proposed changes, although with less harshness. Epic Games CEO Tim Sweeney called the plan “hot garbage,” while Spotify CEO Daniel Ek called it a “extortion.”
Specifically, Apple will allow developers to offer third-party app stores in the EU, but they will have to obtain individual approval and use a human review process. Commissions are reduced to 17% for apps sold outside the app store, but these apps will also be required to pay a core technology fee of €0.50 for the first app install, which is waived until 1 million installs are reached.
The EU will announce whether Apple's proposals are sufficient to meet DMA requirements when reviews begin on March 7. Apple will be subject to “strong action” if it does not fully comply with EU measures.