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Xbox President Calls Apple's New EU Rules 'A Step in the Wrong Direction'

Xbox President Sarah Bond joins Spotify and Epic Games in criticizing Apple's new EU policies.

 & Kate Irwin Reporter

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Xbox President Sarah Bond has joined the growing number of executives criticizing Apple's proposed changes in the European Union, which add a new flat fee per download and allow iOS developers to link to external app stores while taking a 17% cut.

Bond called Apple's new rules in the EU—which are intended to bring Apple into compliance with the Digital Markets Act (DMA)—"a step in the wrong direction," just days after Spotify Founder and CEO Daniel Ek declared the new policies "a new low."

"We believe constructive conversations drive change and progress towards open platforms and greater competition," Bond wrote in a response to Ek on X, formerly known as Twitter.

"Apple's new policy is a step in the wrong direction. We hope they listen to feedback on their proposed plan and work toward a more inclusive future for all," Bond added.

Epic Games CEO Tim Sweeney reposted Bond's thoughts. His company has long contested Apple's App Store rules, most notably with a lawsuit over the in-app payment taxes it has to pay with Fortnite. On Monday, Sweeney called Apple's latest EU update "anticompetitive" and a "bad faith compliance effort."

Last week, Spotify's Ek detailed in a lengthy post Spotify's five-year EU campaign to see Apple's App Store rules change to allow for more competition, alleging that Apple is effectively dodging DMA regulation with its response.

The DMA went into effect in November 2022 but became legally applicable on Jan. 1, 2024. The act is intended to "establish a level playing field for businesses" by encouraging market competition.

In response to the DMA, Apple announced changes to iOS, the Safari web browser, and its App Store this month that establish a new developer flat fee of 0.50 Euros for every App Store download per year in the EU for apps that see over a million downloads. Notably, app updates will be counted as new downloads. A per-download fee is reminiscent of Unity's similar "runtime fee" announcement made last year that enraged game developers and caused Unity to partially walk back some of its plans.

Apple's new rules also charge a 17% fee on external payments made through outbound links instead of the 30% in-app fee. It will also allow developers to offer their iOS apps on third-party marketplaces, among other changes.

This month, the EU's industry chief Thierry Breton told Reuters that the union will begin assessing corporate proposals in March and "will not hesitate to take strong action" against entities like Apple if deemed necessary in the future.

Apple and Microsoft did not immediately respond to requests for comment.

About Our Expert

Kate Irwin

Kate Irwin

Reporter

I’m a reporter for PCMag covering tech news early in the morning. Prior to joining PCMag, I was a producer and reporter at Decrypt and launched its gaming vertical, GG. I have previously written for Input, Game Rant, Dot Esports, and other places, covering a range of gaming, tech, crypto, and entertainment news.

I’ve been a PC gamer since The Sims (yes, the original) in the CD-ROM days. I still think about my first-gen pink iPod mini, which, looking back, was not so mini. In 2020, I finally built my own custom Windows PC for gaming with a 3090 graphics card, but I also regularly use Mac and iOS devices. As a reporter, I’m passionate about documenting the wide world of tech and how it affects our daily lives.

My Areas of Expertise

  • Microsoft
  • Google
  • Artificial intelligence 
  • Cybersecurity
  • Video games are a big one. I specialize in shooters (Apex Legends, Fortnite, Overwatch) but I occasionally test out other genres as well, especially indie games or cozy games (The Sims series, Animal Crossing). 
  • The business and tech that powers video games
  • Cryptocurrency and blockchain technology
  • Social media platforms, including Meta’s apps, X/Twitter, Telegram, TikTok, etc.
  • Tech regulation

The Technology I Use

  • MSI gaming laptops
  • Nvidia graphics cards
  • AMD CPUs
  • MacBook Pro and Air laptops
  • An iPhone from 2019 (though I’m thinking about getting a “dumb phone” like the Light Phone)
  • Nintendo Switch
  • PlayStation 5
  • Freewrite Traveler 
  • At home: Sonos speakers (we have them all over the house), Philips Hue + Ring security products

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