Apple said on Wednesday that a reduction in developer fees implemented to comply with European Union technology regulations did not reduce client prices. The iPhone maker used it to once again criticize the European Union's efforts to limit its market influence. Last year, in response to the EU's Digital Markets Act, Apple allowed software developers in the EU to bypass its App Store and distribute apps directly to users, while also opting out of Apple's in-app payment system, which previously charged commissions of up to 30%.
This adjustment brings the average developer fee down to 20%.
However, the US tech giant said a study it commissioned from Analysis Group showed that app developers were not passing on cost savings to users.
"This study is further evidence that the Digital Markets Act does not benefit consumers in the form of lower prices. At the same time, we also note that this regulation creates new barriers for innovative companies and startups, while also placing consumers at new risks," an Apple spokesperson said.
The European Commission, the EU's antitrust regulator, did not immediately respond to a request for comment.
The study covered data from March to September 2024, involving more than 41 million transactions on about 21,000 products, with total sales of 403 million euros (about $470 million). Research shows that for nine out of 10 of these products, prices have either stayed the same or increased.
How much has Apple lowered developer fees?
Apple is cutting its average developer fee from a maximum of 30% to 20%.
Who are the main beneficiaries of commission savings?
Of the €20.1 million in total commission reductions, more than 86% went to non-EU developers.
Do consumers benefit from Apple's developer fee cuts?
Not benefited. Research shows that only about 9% of the products surveyed have experienced price reductions, and this price reduction is in line with normal pricing rules and has nothing to do with fee reductions; the prices of the remaining 90% of products have either remained unchanged or increased.
What impact will the Digital Markets Act have on Apple?
Forcing Apple to adjust its business model: allowing EU developers to bypass the App Store to distribute apps and choose not to use Apple's in-app payment system.
Leading Apple to lower developer commissions: average developer fees dropped from a maximum of 30% to 20%.
Sparking Apple’s dissatisfaction: Apple believes that the bill has not benefited consumers, but has instead created obstacles for innovative companies and start-ups, and increased consumer risks.
In addition, the "Digital Market Act" also sets a series of "do's and don'ts" rules for seven technology giants, including Apple, Alphabet, Meta Platforms, and Microsoft, aiming to help small competitors enter the market dominated by large enterprises and provide users with more choices.