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

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 report, which covered more than 41 million transactions for some 21,000 products, generating 403 million euros ($470 million) in sales for the period 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.

($1 = 0.8575 euros)

(Reporting by Foo Yun Chee; Editing by Joe Bavier)