Apple’s proposed changes to comply with European Union tech regulations, particularly the introduction of a Core Technology Fee for apps on third-party stores, have sparked criticism from various industry players. Following Epic Games CEO Tim Sweeney and Spotify, Microsoft has expressed concerns, with Xbox president Sarah Bond stating that Apple’s new policy is “a step in the wrong direction.” Microsoft is in the process of developing its Xbox mobile store as an alternative to Apple and Google’s mobile gaming store dominance, and Bond hopes that Apple will listen to feedback and work toward a more inclusive future.
Apple’s Core Technology Fee for third-party app stores in the EU involves a charge of €0.50 for each annual app install after 1 million downloads, and Apple will still retain a 17% commission for developers using third-party payment processors. The EU’s Digital Markets Act is seen as a significant opportunity by Microsoft, which is looking to establish its Xbox mobile store. Epic Games CEO Tim Sweeney has strongly criticized Apple’s App Store changes, calling them “hot garbage” and accusing Apple of attempting to thwart Europe’s new Digital Markets Act.
Spotify has accused Apple of “extortion” with the new App Store tax and has called on EU regulators to take action. The European Commission has stated that it will issue a response to Apple’s changes when the regulations officially go into effect in March, promising “strong action” if Apple’s proposed solutions are deemed inadequate. Microsoft’s stance on Apple’s policy changes may also impact the potential release of an Xbox Cloud Gaming app on iOS. Apple recently opened the App Store to cloud gaming services, allowing developers to submit a single app with the capability to stream all games from their catalog. The reactions of Nvidia, Microsoft, and other cloud gaming providers to Apple’s acceptance of cloud gaming services are still awaited.