Spotify, Epic Accuse Apple of Dividing App Creators with Fee Reduction for Small Developers

Lately Epic, Spotify, and other large app makers have raised their voices against Apple’s App Store policy. Today Apple announced App Store fee reduction for small developers. The reduced App Store commission is available for apps that gross less than $1 million per year.

According to analytics firm Sensor Tower, the reduction will be available for nearly 98 percent of iOS apps. Interestingly, larger app makers like Epic, Spotify, and others will continue to pay 30 percent App Store commission. In the meantime, developers are also rallying against Apple for imposing rules and regulations that benefit the company.

Apple says the cut in their fees will reduce the financial burden on small developers. It is also expected to help developers during the ongoing COVID-19 pandemic. However, larger app makers are not happy with the move, and they claim it does very little to address the issues with the App Store.

“This would be something to celebrate were it not a calculated move by Apple to divide app creators and preserve their monopoly on stores and payments, again breaking the promise of treating all developers equally.” Said Epic CEO, Tim Sweeney.

Epic CEO also remarked that Apple agreed on a 15 percent cut for Amazon and created an “arbitrary” rule. Apple mandates the use of its payment system for apps. Recently Fortnite added a direct payment method and was soon removed from the App Store.

Apple’s anti-competitive behavior threatens all developers on iOS, and this latest move further demonstrates that their App Store policies are arbitrary and capricious. While we find their fees to be excessive and discriminatory, Apple’s tying of its own payment system to the App Store and the communications restrictions it uses to punish developers who choose not to use it, put apps like Spotify at a significant disadvantage to their own competing service. Ensuring that the market remains competitive is a critical task. We hope that regulators will ignore Apple’s ‘window dressing’ and act with urgency to protect consumer choice, ensure fair competition, and create a level playing field for all.

Epic CEO alleges Apple has ignored “fundamental flaws” with the App Store. Basecamp co-founder David Heinemeier Hansson aired his concerns on Twitter. He accused Apple of dividing “the App Store opposition with conditional charity concessions.” Hansson believes even a 15% cut is not justified, and it is “like saying it’s better to have your arm cut off than your hand.”

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