Apple EU App Store Policies Headed In Wrong Direction, Says Xbox

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Apple Taking 17% Cut For Third-Party Store Sales!

Story Highlights
  • Apple has recently changed its EU App Store policies, and they have attracted some attention.
  • The giant has announced a 17% commission and a fee of 0.50 Euro per first install for apps sold outside the App Store.
  • Xbox President Sarah Bond stated that these rules are headed in the wrong direction.

Apple has recently launched new policies for the App Store in the EU to comply with new regulations. These rules will take effect in March, but many companies like Microsoft and Spotify have been less than pleased with the announcement.

Apple has decided to take a 17% cut from all of the apps sold outside of the App Store. Following this announcement, Sarah Bond, the president of Xbox, stated that these rules are a step in the wrong direction.

Why it matters: Microsoft itself takes 30% of the commission from game sales on its platforms, but it does not take a cut for purchases like add-ons and DLC.

Sarah Bond said:

“Apple’s new policy is a step in the wrong direction.”

Bond then said that Apple should listen to the feedback on their policies and then work towards making them better for everyone. The policies seem a bit harsh from the perspective of newcomers looking to compete with the main store.

The percentage Apple will cut is lower than the previous commission, but this is still not favorable for a company like Microsoft. Xbox hopes to establish its own mobile gaming store following its acquisition of Activision Blizzard.

However, with Apple asking for 17% of each transaction, Microsoft is not pleased. Additionally, Apple will also charge a Core Technology Fee of 0.50 Euro for initial installs. This won’t be waived until one million downloads are made.

xbox first party

Making matters worse, if a developer isn’t offering a first-party store, then Apple won’t be liable to issue refunds. While this takes the responsibility off the tech giant, it might be frustrating for the developers.

In addition to Microsoft, the CEO of Spotify has criticized this policy, calling it a new low for the company. Meanwhile, Epic Games likely holds a similar perspective, with CEO Tim Sweeney hoping to go against Apple through various legal measures.

Still, with the new policies in place, the tech giant is soon opening up its ecosystem to third-party app stores. This is one piece of the puzzle for Microsoft in its ambition to dominate mobile gaming through IPs like Call of Duty and Candy Crush.

Overall, it remains to be seen if Apple will make changes to its policies. With enough pressure from other tech giants, it might make a few changes, but nothing has been set in stone yet.

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