Apple Inc. has stated that the lower developer fees it introduced to comply with the European Union’s Digital Markets Act (DMA) have not translated into lower prices for consumers across Europe. The tech giant argues that, despite reducing its commissions on app sales, developers have largely retained the savings rather than passing them on to users.
In a report released on Wednesday, Apple cited a study conducted by the Analysis Group, which examined more than 41 million transactions across 21,000 digital products between March and September 2024. The findings showed that prices either remained unchanged or rose for nine out of ten products, even though Apple had cut its average commission for developers from around 30% to 20%.
According to the study, developers only reduced prices for about 9% of products, a trend that researchers said aligned with normal market fluctuations rather than a direct response to Apple’s lower fees. Furthermore, the report revealed that over 86% of the €20.1 million in reduced commission costs benefited developers outside the EU, indicating that non-European firms captured most of the gains.
Apple implemented these changes last year to align with the EU’s Digital Markets Act, which targets major tech companies such as Apple, Alphabet (Google), Meta Platforms, and Microsoft. The law aims to curb monopolistic behavior, foster competition, and offer users more choice by preventing digital “gatekeepers” from dominating online markets.
However, Apple contends that the DMA’s regulations are creating new obstacles for innovation and exposing consumers to potential security and privacy risks. “This study provides further evidence that the DMA is not benefiting consumers in the form of lower prices,” an Apple spokesperson said. “At the same time, the regulation is creating new barriers for innovators and startups while exposing consumers to new risks.”
The European Commission, responsible for enforcing the DMA, has not yet commented on Apple’s claims. The Commission has maintained that the law is intended to ensure fairness and transparency in the digital economy, though several industry experts note that its long-term effects on pricing and competition remain uncertain.
Apple’s latest remarks are part of a broader debate between Big Tech companies and EU regulators over how best to balance consumer protection, competition, and innovation in Europe’s fast-evolving digital marketplace.
Source:Africa Publicity
