Spotify, a significant Apple critic, unsurprisingly arrived on the scene swinging after Apple launched just how it absolutely was complying utilizing the EU’s new legislation, the Digital Markets Act, or DMA, phoning Apple’s plan “extortion” and a “complete and complete farce.” But on its Q4 2023 profits call with investors, Spotify CEO Daniel Ek took a far more muted tone regarding the brand new legislation, stating that there’s no real disadvantage to its company, from an investor point of view, as businesses can stick to their particular present terms with Apple, plus in reality, you will find prospective “future upsides, that would be ”MozillaThe that is quite significant streamer is one of many vocal critics of the law that is new joining other individuals like Epic Games, Microsoft, and

, who’ve raised issues about Apple’s execution.

Though Apple is complying utilizing the page regarding the law — which makes Apple to start its app ecosystem up to new app stores and other payment mechanisms — it’s definitely not complying with the spirit of the law, meant to foster greater competition. Instead, Apple’s complicated new terms involve a new Core Technology Fee, that requires developers to pay €0.50 for each first install that is annual 12 months over a 1 million limit, no matter their particular circulation station. It will likewise just take a commission on electronic products or services that take spot on a developer’s web site within 1 week of a user tapping through an link that is in-app external purchases.

Ek immediately blasted Apple on social media after its terms were announced, calling Apple’s solution a “masterclass in distortion” and warning that Spotify could “not afford these fees” if it wanted “to be a company that is profitable”

To investors in the quarterly profits telephone call, he reiterated this stance stating that Apple’s answer ended up being a” that is“farce “no sane developer” would want to choose. However, he downplayed any impact that is negative principles might have on Spotify’s company or incomes.

“I Know that there initially was some relevant questions about whether or not this would be a downside for Spotify. I don’t think that’s the case. So, you know, we still have the ability to be on the terms that are old and continue as we’re presently going,” Ek said. Put simply, there is nothing altering for Spotify when you look at the term that is near the new law goes into a blog postIn addition, the CEO suggested some pluses could emerge from the new landscape that is competitive incorporating there are “future upsides” to your brand new principles that would be “quite considerable.” The business had hinted before about its programs the first time Spotify mentioned superfan clubs, stating that the DMA will allow for such things as superfan groups and alternative stores that are app and would give creators the ability to download the Spotify for Artists app and Spotify for Podcasters app directly from its website. (This was

, in fact.)

In addition, the company had earlier said that the loosened rules would mean it could communicate to customers in its app about “new products for sale, promotional campaigns, superfan clubs, and upcoming events, including when items like audiobooks are going on sale,” the blog post read.

Ek again confirmed that’s the case, it couldn’t have done before because doing so would have made all of Spotify unprofitable as he told investors that fan clubs were among the things Spotify could leverage the new rules to enable, which is something. As well as lover clubs, the CEO additionally proposed that, offered correct laws, Spotify might take benefit of its very own in-app acquisitions on such things as audiobook acquisitions or top-ups of hours — things that would be “quite meaningful” for Spotify’s incomes, considering that we would like to do, we’re currently restricted in doing on the iOS ecosystem,” he said that it currently it has to share a 30% cut of those with Apple.

“Some of these more innovative things. “So obviously, my hope is still very much that the Commission that is european will action and enable this to happen,” he said apparently talking about both the March 7 utilization of regulations plus the chance that the Commission could force Apple to change its modifications. He noted

that it can then be “far higher when it comes to ecosystem, both for customers and creators* that is alike.”( (*)