Deezer Joins Spotify in Supporting EU Fine Against Apple for Antitrust Violations
Streaming music service Deezer has joined Spotify in praising the European Union’s €1.84 billion fine imposed on Apple for breaking antitrust rules in the streaming music market.
However, in a statement issued today, Deezer CEO Jeronimo Folgueira emphasized the need for the EU Commission to thoroughly review Apple’s response to the Digital Markets Act (DMA).
“Apple’s proposal is deceptive and an attempt to bypass European regulations,” Folgueira stated, cautiously welcoming the incoming fine.
The streaming music executive urged the EU Commission to thoroughly reexamine Apple’s DMA terms in light of the fine to ensure their compliance with the new regulation.
Apple introduced its new DMA rules in January, which aim to provide a path forward for app developers to distribute apps from alternative app marketplaces. However, the company also introduced new business terms that have been criticized by developers for not leveling the playing field.
Under the new rules, developers must pay a “Core Technology Fee” of €0.50 for each first annual app install after surpassing 1 million installs. Instead of creating fair competition, this fee allows Apple to continue profiting from larger businesses operating outside of its App Store.
Deezer joined several other developers in drafting an open letter to the EC last week, claiming that Apple was making a “mockery” of the DMA. Epic Games, 37signals, Proton, Spotify, and others signed the letter, urging the EC to take “swift, timely, and decisive action against Apple” to protect developers.
The streaming company also reiterated its complaints in a blog post, updated to comment on the new fine, stating that Apple’s DMA rules represent an “attempt to circumvent the new regulation with an alternative to the current business terms.” Deezer called the Core Technology Fee “excessive” and noted that it makes it difficult for app businesses to scale profitably.
As a result, Deezer stated that it saw no benefit in switching to Apple’s DMA rules.
So far, few developers have publicly announced their intentions to switch to the new terms. The maker of Setapp, a subscription service for apps, has announced that it will be switching to Apple’s DMA terms. Germany-based mobivention also plans to introduce an alternative app marketplace for B2B and B2C iOS apps. However, larger developers like Spotify and Epic Games, as well as tech companies like Meta, Mozilla, and Microsoft, have all voiced their criticism of Apple’s new rules.