Apple’s App Store Fee Cuts Fail to Benefit Consumers, Study Shows
A recent study commissioned by Apple has revealed that the reductions in commission fees for software sold through the App Store have not led to any significant benefits for consumers. The analysis, conducted by the Analysis Group, highlights a disconnect between the European Union’s regulatory intentions and the actual outcomes experienced by users.
In March 2024, Apple implemented fee reductions in compliance with the EU Digital Markets Act (DMA). The EU Commission anticipated that these changes would foster competition and lower app prices. Contrary to these expectations, the research indicates that prices for apps and in-app purchases remained unchanged in 91 percent of transactions. The study evaluated approximately 41 million App Store transactions from 21,000 paid apps and in-app purchases.
Although the average fees for developers decreased by about 10 percentage points, the majority of developers did not pass on these savings to consumers. In fact, in some instances, prices have even increased. The five largest app providers in the EU maintained their pricing structures, retaining the additional revenue generated from the unchanged fees. Overall, developers collectively saved around 20.1 million euros in commission fees, with more than 86 percent of these savings benefiting companies located outside the EU.
The study found that when developers did choose to lower their prices, the reductions averaged only 2.5 percent. Apple noted that similar patterns were observed in past fee reduction initiatives. In a statement, the company asserted that the DMA had not achieved its intended goals, arguing that the regulation has led to “less security, less data protection, and a worse user experience” for consumers. Apple also claimed that new challenges for start-ups and innovations would arise, exposing consumers to heightened risks.
Despite the study’s findings, it is worth noting that the analysis focused exclusively on data from the App Store, which raises questions about its comprehensiveness. Prices in alternative app marketplaces or on the web, which the DMA allows, were not considered in this evaluation. Apple stated that a long-term analysis conducted over an eight-month period showed no significant price changes resulting from the fee cuts. The so-called core technology fee, applicable to apps with more than one million initial installations per year, also did not impact the results.
In light of these findings, Apple is leveraging the study to challenge the regulatory implications of the DMA. The company has postponed or disabled several planned features for iOS 18 and iOS 26 within the EU, including iPhone mirroring and automatic Wi-Fi sync, citing data protection concerns. Apple argues that the DMA could allow third-party developers access to sensitive user data, such as Wi-Fi histories and usernames.
As the debate over the effectiveness of the EU Digital Markets Act continues, this study raises critical questions about regulatory approaches in the fast-evolving digital landscape.
