By Foo Yun Chee and Paul Sandle
BRUSSELS (Reuters) -Lower developer fees implemented by Apple to comply with European Union tech regulations have not reduced prices for users, the iPhone maker said 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 users 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, said a study it commissioned from 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 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 said.
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, said that developers kept the same prices or increased them for nine out of 10 products.
It said 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 said 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 said. 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 smaller rivals entry into markets dominated by the largest companies and giving users more choice.
($1 = 0.8575 euros)
(Reporting by Foo Yun Chee; Editing by Joe Bavier)
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