"Apple's Biggest Critics Are Big Mad About The New 27% App Store Tax/ Spotify Says The Policy Shows That Apple Will 'Stop At Nothing' To Profit Off Of Developers And Users" - The Verge
Portfolio Pulse from Benzinga Newsdesk
Apple has updated its App Store policies to comply with the Epic v. Apple court ruling, allowing U.S. developers to link to alternative payment methods but imposing a 27% commission on such transactions. Critics like Spotify and Epic Games CEO Tim Sweeney have slammed the move as anticompetitive and undermining the court's intent to foster competition. Spotify calls for EU intervention, while the Coalition for App Fairness criticizes the policy for not benefiting developers or consumers. Apple's similar policies in the Netherlands and South Korea have faced regulatory fines and warnings.
January 18, 2024 | 6:06 pm
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Apple's imposition of a 27% tax on alternative payment methods in the App Store has drawn criticism and could face regulatory challenges, potentially affecting investor sentiment.
The negative response from developers and the potential for regulatory action in the EU, similar to fines in the Netherlands and warnings in South Korea, could lead to legal challenges and impact Apple's revenue from the App Store. This may result in negative investor sentiment in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90
NEUTRAL IMPACT
Spotify criticizes Apple's new App Store tax policy, calling it 'outrageous' and potentially seeking EU intervention, which may affect Spotify's operating costs and market positioning.
While Spotify's criticism of Apple's policy indicates discontent with the App Store's operating environment, it's unclear how this will directly impact Spotify's short-term financials or stock price. However, potential EU intervention could affect future operating costs and competitive positioning.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70