A recent study commissioned by Apple has found that reductions in app store commissions mandated by the EU Commission have not translated into lower prices for consumers. The research, conducted by Analysis Group, analyzed approximately 41 million transactions from the App Store, revealing that in 91 percent of cases, app prices remained unchanged despite a decrease in average fees for developers.
The fee reductions were implemented in March 2024 as part of the EU Digital Markets Act (DMA). Contrary to the expectations set by the EU, which anticipated lower prices and increased competition, the findings suggest that developers have largely retained the savings from the commission cuts rather than passing them on to users. In fact, the study indicated that in some instances, app prices have actually increased.
According to the analysis, developers saved around €20.1 million in commission fees, with more than 86 percent of these savings benefiting companies outside the EU. The five largest app developers in the region did not alter their pricing, opting to keep the additional income for themselves. When developers did lower prices, the average reduction was only around 2.5 percent, a trend that Apple noted has been consistent with previous fee reduction initiatives.
Criticism of the Digital Markets Act
In its response to the study, Apple criticized the DMA for failing to achieve its intended goals. The company stated that instead of fostering competition and reducing prices, the regulation has led to “less security, less data protection, and a worse user experience.” Additionally, Apple warned that the DMA could create new obstacles for start-ups and stifle innovation, exposing consumers to increased risks.
The study, however, relied exclusively on data from the App Store and did not account for pricing in alternative app marketplaces or web platforms enabled by the DMA. Apple pointed out that a long-term analysis extending over eight months showed no significant price changes. Furthermore, the so-called core technology fee for apps exceeding one million initial installations annually had no noticeable impact on pricing outcomes.
Implications for Future Developments
The findings of this study are being leveraged by Apple to highlight the regulatory implications of the DMA. Several anticipated features in upcoming versions of its operating systems, notably iOS 18 and iOS 26, have been postponed or disabled in the EU. Apple attributes these delays to concerns regarding data protection, as the DMA would permit third-party developers to access sensitive user information, including WLAN histories and usernames.
As the debate continues over the effectiveness of the EU’s regulatory framework, the implications for both consumers and developers remain a critical topic. With Apple’s significant presence in the app market, the outcomes of these regulations will likely influence future business practices and competitive dynamics within the industry.
The study underscores the complex relationship between regulatory efforts and market realities, prompting further scrutiny of how such measures impact consumers and the broader technological landscape.
