Apple says the developer fee cut will not be passed on to users in the European Union.
Lower developer fees implemented by Apple to comply with European Union technology regulations have not reduced prices for users, the iPhone maker said on Wednesday, renewing criticism of Europe's efforts to curb its market power.
Lower developer fees implemented by Apple to comply with European Union technology regulations have not reduced prices for users, the iPhone maker said on Wednesday, renewing criticism of Europe's efforts to curb its market power.
Last year, in response to the EU's Digital Markets Act, Apple allowed software developers to distribute their apps to EU users outside of its App Store and opt out of its in-app payment system, which charges commissions of up to 30%.
This reduced fees for developers by an average of 20%.
However, the US tech giant said a study commissioned by Analysis Group showed that app developers have not passed on the cost savings to users.
"This study provides further evidence that the DMA is not delivering any benefits to consumers in the form of lower prices. Furthermore, we know this regulation is creating new barriers for innovators and startups and exposing consumers to new risks," an Apple spokesperson said.
The European Commission, the EU's anti-competition enforcer, did not immediately respond to a request for comment.
The report, which covers more than 41 million transactions for approximately 21,000 products and sales of 403 million euros ($470 million) for the period from March to September 2024, said developers kept prices the same or increased prices for nine out of 10 products.
It said more than 86% of the 20.1 million euro reduction in commission fees went to non-EU developers.
Although the study found that developers reduced prices on about 9% of the products surveyed, it also said these reductions were in line with general pricing patterns. "This suggests that the majority of the price reductions are unrelated to fee reductions," the study said. The DMA has compiled a list of dos and don'ts for seven major tech companies, including Apple, Alphabet, Meta Platforms, and Microsoft, aimed at allowing smaller rivals to enter markets dominated by the largest companies and providing more choice to users.
($1 = 0.8575 euros)
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