Experts and Critics Not Happy About the New App Store Tax

Experts and critics are not happy about the new App Store tax. Spotify as one has stated that the new policy reveals that Apple will stop at nothing to profit off users and developers.

The New App Store Tax

The New App Store Tax

Apple’s recent changes to its App Store policies, including a 27 percent tax on alternative payment methods, have drawn criticism from some of the company’s most vocal critics. Spotify spokesperson Jeanne Moran expressed dissatisfaction, stating that the new tax demonstrates Apple’s relentless pursuit of protecting its profits through the app store monopoly.

The update, mandated by court order in the Epic v. Apple case, allows US developers to link to alternative payment methods but imposes a 27 percent commission for purchases made outside the App Store.

What Epic Games CEO Thinks about the Changes

Epic Games CEO Tim Sweeney called Apple’s changes “anti-competitive” and argued that they undermine the court order, hindering price competition by preventing developers from offering lower-priced in-app purchases. Moran from Spotify described the 27 percent tax as “outrageous” and urged the European Commission to prevent similar policy changes in the EU.

The Coalition for App Fairness (CAF) Reaction to the Development

The Coalition for App Fairness (CAF), a group founded by Spotify, Epic Games, Tile, and others aiming to challenge Apple and Google’s dominance in the mobile app industry, criticized Apple’s approach to compliance with the court decision. Rick VanMeter, the executive director of CAF, stated that the changes do not benefit developers and consumers, failing to enhance choice or lower prices.

Apple Has Implemented Similar Policies in the Netherlands and South Korea

Apple has implemented similar policies in the Netherlands and South Korea, facing fines for non-compliance in the former. The move has raised concerns among regulators and further intensified the ongoing debate over app store policies and competition.



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