Epic Games, Spotify not impressed with Apple’s App Store changes

Fortnite

Source: Playstation

Epic Games and Spotify reacted Tuesday to Apple’s decision to cut App Store fees by 15% for developers earning less than $ 1 million in annual net sales from the App Store.

In short: they are not affected. App development is a winner-most-business, according to 2019 estimates by app analytics firm Sensor Tower, and the top 1% of Apple and Google’s stores are the most popular publishers with sales of around 93%. Epic and Spotify, which are likely to be in that top 1% category, see Apple’s move as criticism, with little criticism for mitigating the underlying problem of unfair pricing for developers.

Epic CEO Tim Sweeney said on Tuesday, “It will be something to celebrate. By Apple dividing app makers and preserving their monopoly on stores and payments, again dealing equally with all developers The promise to do is broken. “

“By offering special 15% terms to select robber barons such as Amazon, and now even smaller indies, Apple is hoping to remove enough critics that they can overcome their blockade on competition and most in-app purchases. To 30% tax. “

Sweeney said Android and iOS needed to compete for pay to increase the level of the game between developers and service providers.

Apple’s anti-competitive behavior threatens all developers on iOS, and this latest move further demonstrates that their App Store policies are arbitrary and dramatic, “Spotify said.” We hope that the regulators will ignore Apple’s ‘window dressing’ and act promptly to protect the consumer. Ensure choice, fair competition, and create a level playing field for all. “

Epic Games and Spotify are among the most vocal Apple critics. Epic filed a lawsuit against Apple earlier this year when the game developer released a version of Fortnite, allowing users to abandon Apple’s in-app payment platform, for Apple’s 30% cut, Was banned from the App Store.

Spotify has criticized Apple’s practice and has teamed up with Epic Games, Match Group and other developers to create a non-profit organization called “The Coalition for App Fairness” for legal action against Apple’s in-app commission fee Is fighting for It also responded to Apple’s changes on Tuesday.

A ‘symbolic gesture’

The Coalition for App Fairness said Apple’s change was a “symbolic gesture” In a tweet.

“$ 1,000,001 in revenue is an arbitrary benchmark. Cut apples by 30%, marketing 20%, taxes 30% and you’re left with enough to make and maintain the product – but to pay your employees or profit. Forget about earning. “

David Hennimier Hanson, co-founder and CTO of Basecamp, the project management and team communication app, also spoke on Tuesday.

“Apple is a $ 2 trillion company that sells $ 1,000 phones to consumers who buy those devices and want to use the best apps they can access,” CNBC’s Squock Alleigh said on Tuesday. “Apple needs to move it around and look at it and say ‘Hey hey, these developers are selling our phones, we’re paying them.” “He said Apple should not be” shook “developers.

Proton email app founder and CEO Andy Yen said the change is positive, but “a thin attempt to avoid regular scrutiny.”

“It’s ironic that Apple, a $ 2 trillion company, believes that any company making more than $ 1 million is making too much money and needs to pay higher fees,” Yeh said.

“What small businesses need is not a little cheap monopoly, but a real alternative to payment methods in the App Store. It’s only through allowing real competition in App Store payments that a truly competitive fee ( Neither 30% nor 15%) can be assured., ”He added.

The App Association, an industry group representing app developers, welcomed the policy change.

App Association President Morgan Reid said in a statement, “Today’s announcement by Apple marks a pivotal moment in the development of the app economy, recognizing small businesses as important in the role of our members, such as our Members play in market development and innovation. “

The House Judiciary Subcommittee on Antitrust released a report in October stating that Apple has “monopoly power” over software distribution on iPhones, but also noted that Apple’s ecosystem generated benefits for both consumers and developers is.

Apple responded to that report and said that it did not have a major market share in any of the categories where it trades.

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