A recent study has found that the reduction in commissions for software sold through Apple’s App Store has not translated into benefits for consumers. The study, commissioned by Apple and conducted by the Analysis Group, reveals that developers are generally not passing on the savings from the decreased fees to users. This development follows the implementation of fee reductions in March 2024, as part of the EU Digital Markets Act (DMA).
According to the findings, which evaluated approximately 41 million App Store transactions from 21,000 paid apps and in-app purchases, prices for apps and in-app purchases remained unchanged 91 percent of the time. Despite average fees for developers being reduced by around 10 percentage points, some prices even saw increases. Notably, the five largest app providers in the EU did not adjust their prices, retaining the additional income generated from the commission cuts.
The study indicates that developers collectively saved about 20.1 million euros in commission fees, with over 86 percent of these savings benefiting companies outside the EU. When developers did lower their prices, the average reduction was a modest 2.5 percent. Apple asserted that this trend mirrors outcomes observed in prior fee reduction programs.
In its response, Apple criticized the DMA, claiming it has not achieved its intended goals of fostering competition and reducing prices. Instead, the company argues that the regulation has led to “less security, less data protection, and a worse user experience.” Apple further contends that the DMA creates new obstacles for start-ups and innovation, potentially exposing consumers to greater risks.
Concerns Over Study Limitations
It is important to note that the study relies exclusively on data from the App Store and was commissioned by Apple, raising questions about its impartiality. The analysis did not consider prices in alternative app marketplaces or on the web, which the DMA facilitates. Apple also pointed to a long-term analysis over eight months that showed no significant price changes, asserting that the core technology fee for apps with over one million initial installations per year did not impact the results.
Furthermore, Apple used the study to highlight regulatory challenges posed by the DMA, noting that several features planned for iOS 18 and iOS 26 have been postponed or disabled in the EU. These features include iPhone mirroring and automatic Wi-Fi sync, which Apple attributes to concerns over data protection. The DMA would allow third-party developers access to user data such as Wi-Fi histories and usernames.
Yasir Zeb, a digital marketing expert with extensive experience in technology, commented on the implications of the study and the broader context of regulatory impacts on the tech industry. As the landscape evolves, the tension between regulatory frameworks and technological innovation continues to shape the future of digital marketplaces.
With the findings of this study, it remains to be seen how the regulatory environment will adapt and what effects it will have on both consumers and developers moving forward.
