Apple says developer fee cuts didn’t lower app prices in EU

Apple said lower developer fees introduced to comply with European Union regulations have not led to cheaper app prices for users in the region.

In 2024, Apple cut its developer commission fees to an average of 20% and allowed developers to distribute apps outside its app store in response to the EU’s Digital Markets Act.

A study commissioned by Apple found that developers did not lower prices for about 90% of products, with most savings from reduced fees going to non-EU developers.

The report, covering more than 41 million transactions between March and September 2024, said price drops observed for roughly 9% of products aligned with existing pricing trends, not the fee changes.

The Digital Markets Act is designed to give users more choice and allow smaller companies to compete with major tech firms, including Apple, Alphabet, Meta, and Microsoft.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Apple’s EU price study misses DMA adoption data

Apple’s economists say 91% of app prices did not fall after fees dropped by about 10 percentage points under the Digital Markets Act (DMA) changes, but they only reviewed App Store transactions and skipped other channels 1.
They left out pricing from alternative marketplaces and web checkouts on developers’ sites, which the DMA opened up 1. With no adoption or share data for those routes, the claim about consumer benefit stays incomplete 1.
Apple said developers paid €20.1 million less in fees, with over 86% of savings going to non-EU teams 1. The top five EU developers also held prices steady 1, yet we lack market share or alternative channel data to judge buyers’ choices.

Infrastructure vendors should map the new EU alternative app store ecosystem for partnerships

At least six iOS stores now operate in the EU 2. These include AltStore PAL and Setapp Mobile 2. Others include Epic Games Store and Aptoide 2. Skich and Mobivention also launched 2. They run moderation plus fraud checks, then handle support 3.
Each marketplace sets approvals, then handles support and refunds 2. Apple requires operators to manage purchases and subscriptions, then put anti-fraud in place 3. Aptoide takes 10-20% on in-app purchases, while Skich takes 15% 2. Developers on Apple’s alternative business terms face a €0.50 Core Technology Fee per first annual install above one million users 3. Payment firms, tax teams, and CDN or fraud vendors can target these flows.