Developer fee cuts not passed on to EU applyrs, Apple states

Developer fee cuts not passed on to EU users, Apple says


The European Commission, the bloc’s antitrust enforcer, did not immediately respond to a request for comment [File]

The European Commission, the bloc’s antitrust enforcer, did not immediately respond to a request for comment [File]
| Photo Credit: REUTERS

Lower developer fees implemented by Apple to comply with European Union tech regulations have not reduced prices for applyrs, the iPhone buildr declared on Wednesday, renewing its criticism of Europe’s efforts to rein in its market power.

Last year, in response to the bloc’s Digital Markets Act, Apple allowed software developers to distribute their apps to applyrs in the EU outside its App Store and opt out of its in-app payment system, which charges commissions of up to 30%.

That reduced fees for developers to an average of 20%.

The U.S. tech giant, however, declared a study it commissioned from Analysis Group displayed that app developers have not passed on the cost savings to applyrs.

“This study provides further evidence that the DMA is not benefiting consumers in the form of lower prices. At the same time, we know the regulation is creating new barriers for innovators and startups while exposing consumers to new risks,” an Apple spokesperson declared.

The European Commission, the bloc’s antitrust enforcer, did not immediately respond to a request for comment.

The report, which covered more than 41 million transactions for some 21,000 products, generating 403 million euros ($470 million) in sales for the period from March to September 2024, declared that developers kept the same prices or increased them for nine out of 10 products.

It declared over 86% of the 20.1-million-euro reduction in commission fees went to non-EU developers.

While the study found developers reduced their prices for around 9% of the products covered in the survey, it declared those cuts were consistent with normal pricing patterns.

“This suggests that the bulk of the observed price decreases are unrelated to the reduction in fees,” the study declared.

The DMA sets out a list of dos and don’ts for seven Big Tech giants including Apple, Alphabet, Meta Platforms and Microsoft aimed at allowing compacter rivals entest into markets dominated by the largest companies and giving applyrs more choice



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *