App developers urge EU action on Apple fee practices

Dec 16 (Reuters) - ‌A coalition of 20 app developers and consumer groups on Tuesday called upon European ‍regulators ‌to enforce EU laws against Apple, saying the company's fee structure unfairly disadvantages European developers compared ⁠to their U.S. rivals after a recent ‌court decision in the United States.

The European Union's Digital Markets Act (DMA), implemented in 2023, mandates that large tech platforms labelled "gatekeepers", such as Apple, facilitate in-app transactions outside their ecosystem at no charge.

The coalition's appeal reflects ⁠concerns over a disparity following a U.S. court ruling that restricts Apple's ability to impose fees on external transactions. ​The European Commission earlier this year fined Apple 500 million ‌euros ($588 million) for breaching the DMA by ⁠obstructing developers from guiding users to alternative payment methods.

In response to the EU ruling, Apple revised its terms to impose fees ranging from 13% for smaller businesses to up to ​20% for App Store purchases, alongside penalties of 5% to 15% on external transactions.

The Coalition for Apps Fairness (CAF), representing firms such as Deezer and Proton, argues these revised fees still violate DMA stipulations and says that U.S. developers benefit from more favourable terms after the ​court decision.

"This ‍situation is untenable and damaging ​to the app economy," CAF said in a statement, accusing Apple of undermining transparency and stifling innovation.

Global Policy Counsel for CAF, Gene Burrus, said that developers in the EU have to either bear the cost of those fees or pass them down to customers. "It is bad for European companies, and it is bad for European consumers," he said.

According to CAF, European developers remain ⁠disadvantaged six months after the Commission declared Apple's policies illegal under the DMA.

Although Apple has announced further policy changes to take effect in ​January, it has yet to specify what these revisions will entail, fuelling dissatisfaction among developers over the lack of clarity.

"We want the EU Commission to tell Apple that the law is the law and that free of charge means free of ‌charge," Burrus said, adding that the European authorities should consider referring the issue to the European Court of Justice if necessary.

($1 = 0.8499 euros)

(Reporting by Leo Marchandon in Gdansk; Editing by Matt Scuffham)