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Spotify \u2014 one of Apple\u2019s biggest critics \u2014 says Apple\u2019s new plan to comply with the European Union\u2019s tech regulations is \u201ca complete and total farce.\u201d In a post published on Spotify\u2019s website<\/a>, the company calls Apple\u2019s new app installation fee \u201cextortion, plain and simple\u201d and says Apple is trying to force developers not to leave its store.<\/p>\n<\/div>\n The fee, which Apple calls the Core Technology Fee<\/a>, will require developers using third-party app stores to pay \u20ac0.50 for each annual app install after 1 million downloads. Spotify says the new tax will hurt developers, especially if they\u2019re offering apps for free. \u201cFrom our read of Apple\u2019s proposal, a developer would have to pay this fee even if a user downloaded the app, never used it and forgot to delete it,\u201d Spotify writes.<\/p>\n<\/div>\n The company also calls out the 17 percent commission that Apple will still take from the developers who choose to use third-party payment processors. This will make a \u201cdeveloper\u2019s choice between the status quo and this new program as difficult as possible,\u201d Spotify adds. While Spotify revealed plans to roll out its own in-app payment system<\/a> in the EU this week, it seems unlikely this will pan out.<\/p>\n<\/div>\n \u201cSpotify itself faces an untenable situation,\u201d Spotify CEO Daniel Ek writes in a thread<\/a> on X (formerly Twitter). \u201cWith our EU Apple install base in the 100 million range, this new tax on downloads and updates could skyrocket our customer acquisition costs, potentially increasing them tenfold … Under the new terms, we cannot afford these fees if we want to be a profitable company, so our only option is to stick with the status quo.\u201d<\/p>\n<\/div>\n In a statement to The Verge<\/em>, Apple spokesperson Fred Sainz says the company is \u201chappy to support the success of all developers,\u201d including Spotify. \u201cThe changes we\u2019re sharing for apps in the European Union give developers choice \u2014 with new options to distribute iOS apps and process payments,\u201d Sainz says. \u201cEvery developer can choose to stay on the same terms in place today. And under the new terms, more than 99% of developers would pay the same or less to Apple.\u201d<\/p>\n<\/div>\n Apple is facing a wave of criticism over its new rules. Many developers, large and small, are frustrated<\/a> with the fees they\u2019ll face if they decide to bring their app outside the App Store or add an alternative payment option. The EU Commission says it will issue a response to Apple\u2019s changes<\/a> when the regulations officially go into effect in March \u2014 in the meantime, it will give developers plenty of time to pick apart the new rules.<\/p>\n<\/div>\n