A recent study commissioned by Apple indicates that the reductions in App Store commissions mandated by the European Union (EU) have not resulted in benefits for consumers. The findings reveal that developers are not passing on the cost savings from reduced fees, contrary to expectations set by the EU’s Digital Markets Act (DMA) implemented in March 2024.
The study, conducted by the analysis firm Analysis Group, assessed approximately 41 million transactions from 21,000 paid apps and in-app purchases. It concluded that app prices remained unchanged 91 percent of the time, even with the average developer fee reduced by about 10 percentage points. In some instances, app prices even increased. Notably, the five largest app developers in the EU did not adjust their pricing strategies, retaining the additional revenue generated from the commission cuts.
Overall, developers saved around 20.1 million euros in commission fees due to the changes. However, over 86 percent of these savings were attributed to companies based outside the EU. When price reductions did occur, they averaged only 2.5 percent, a trend that Apple noted had been observed in previous fee reduction initiatives.
In its response to the findings, Apple contended that the DMA failed to meet its objectives, asserting that it led to “less security, less data protection, and a worse user experience” rather than fostering competition and lowering prices. The company raised concerns that the regulatory framework created obstacles for startups and innovations, ultimately placing consumers at greater risk.
Study Limitations and Regulatory Critique
The analysis focused exclusively on data from the App Store, omitting prices from alternative app marketplaces and web platforms that the DMA aims to support. According to Apple, a long-term review conducted over eight months showed no significant changes in pricing trends, which further undermines the effectiveness of the DMA’s intended impact.
Additionally, the study evaluated the influence of the so-called core technology fee for apps achieving over one million initial installations per year, finding no notable effect on pricing outcomes. Apple also leveraged the study to criticize the regulatory implications of the DMA, stating that several features planned for upcoming operating systems, including iOS 18 and iOS 26, have been postponed or disabled in the EU. The company attributed these delays to concerns about user data protection, particularly regarding third-party access to sensitive information like WLAN histories and usernames.
As the conversation around app store regulations continues, the findings from this study underscore the complexities of market dynamics and the challenges posed by regulatory measures. With the EU’s intent to enhance competition and provide benefits to consumers, the actual impact remains to be fully realized.