Microsoft opposes Apple's proposed changes to the App Store, and some are dissatisfied.

Microsoft opposes Apple's proposed changes to the App Store, and some are dissatisfied.

Microsoft has joined other major companies in expressing disappointment with Apple's new plan designed to comply with European Union technology regulations (via The Verge). Microsoft followed similar statements from Epic Games and Spotify expressing concern over the plan.

Xbox President Sarah Bond posted on X that Apple's new plan was "a step in the wrong direction" and that she "hopes they will listen to feedback on their proposed plan and work toward a more inclusive future for all."

If Apple's change of plans goes through, Microsoft could lose a lot. There are rumors that Microsoft is secretly developing its own game app store with Activision Blizzard content front and center. Microsoft would stand as one of the strongest competitors in the newly opened market, but Apple's plans may stand in the way.

The reason for Apple's plan is EU digital marketing legislation designed to counter allegations that both Apple and Google dominate the smartphone app market. In response, Apple announced a core technology fee that developers using third-party app stores must pay €0.50 per app installation per year after 1 million downloads. In addition to this fee, Apple will take a 17% fee from developers who choose to use a third-party payment system instead of Apple's own. [The plan was called "Hot Garbage" by Epic Game CEO Tim Sweeney, who also called "Apple's plan to block Europe's new Digital Markets Act a vicious compliance . is a clever new example," claimed Epic, which recently defeated Google in a lawsuit over the company's apparent market monopoly and is engaged in a protracted legal battle with Apple, which has forced Apple to cease its alleged "steering" practices.

Spotify has been equally critical, accusing Apple of imposing this implicit App Store "tax" and calling on EU regulators to take action. The European Commission has now stated that it will issue a response to Apple's changes when the regulation takes effect in March and will take strong action if the changes are not sufficient.

Apple's EU compliance plan would allow developers to circumvent app stores and payment policies while penalizing them financially for doing so. However, it remains unclear what the EU can do if it finds the changes inadequate. We will know in March when this law goes into effect.

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