Apple is once again going after the European Union’s new tech rules. It says that the lower fees it had to charge app developers have not led to cheaper prices for customers. Apple says that even while developers are paying less in fees, users all around Europe aren’t really saving money. This, according to Apple, is a hint that the European Union’s drive to regulate may not be working.
The EU’s Digital Markets Act (DMA) is at the centre of the disagreement. It is a series of broad laws that aim to reduce the power of big tech companies and make digital markets more competitive. Last year, Apple made a lot of adjustments to its structure in order to follow the DMA. One of the most important changes was letting developers share apps outside of the official App Store and utilise different payment methods inside the app. This adjustment let developers escape Apple’s regular commission fees, which may be as high as 30%.
After these modifications, the company lowered its average developer fee to about 20%, which many people hoped would make the digital marketplace more fair and open. The European Commission said that Apple‘s dominance over app distribution and payment mechanisms made competition less fierce and raised costs for both developers and end users. Apple now maintains that its cheaper costs haven’t really helped customers because developers haven’t passed on the savings.
A research that Apple paid for from the consulting firm Analysis Group found that most app developers have maintained pricing the same or even boosted them, even if the commissions have gone down. The study looked at more than 41 million transactions for roughly 21,000 digital goods sold between March and September 2024. The total sales were about €403 million (about $470 million). The data showed that nine out of ten products either kept their prices the same or went up throughout that time.
“This analysis shows even more that the DMA is not helping customers by lowering prices. An Apple spokesman added, “We also know that the regulation is making it harder for new businesses and innovators to get started and putting consumers at risk.”
Apple’s tone shows that it is getting more and more frustrated with the European Union’s efforts to change the digital economy. The business has said several times that these kinds of rules might hurt smaller developers and users instead of helping them. It says that the App Store model, which has centralised control, security checks, and a commission-based structure, is valuable because it builds confidence, keeps users secure, and makes the experience seamless.
Apple thinks that the DMA throws that balance off. The business says that the EU has made things more confusing and risky in an ecosystem that was already well-regulated by imposing broad access to third-party app stores and payment methods. Apple executives have warned that these changes could lead to more scams, less privacy protection, and apps of varying quality, which could make people less trusting of the digital marketplace in the long run.
European regulators, on the other hand, say that Apple’s long-standing control over its App Store gives it too much power over what people can view, download, and pay for. The European Commission says that its goal is to make sure that competition is fair and that developers may reach customers more readily without having to follow Apple’s tight rules or pay its high fees. The Commission hasn’t said anything in response to Apple’s most recent remark, but the argument brings up a bigger question: can digital regulation really make technology markets better for consumers?
There is obviously a bigger economic challenge here that extends beyond the legal issues. Even if developers’ fees go down, there is no guarantee that users will see any of the savings. Developers, like any business, could choose to maintain extra revenues to invest in growth, marketing, or innovation, rather than decreasing pricing. Apple’s research basically says that cutting structural costs doesn’t always mean that items will be cheaper.
Many independent developers have commented that the lower fees are good, but they also have to pay for new things like using different payment systems and handling software distribution outside of the software Store. These changes to how the business runs, such handling billing, taxes, and customer service on its own, can make things more complicated and cost more. For some small developers, the fee drop may just make up for these extra duties, leaving little room to lower pricing.
People who watch the industry say this argument isn’t just about Apple or the EU. Regulators in the digital world are trying to figure out how to keep big platforms in check without hurting the ecosystems that have helped them succeed. The European Commission has also looked at Google, Amazon, and Meta under the same Digital Markets Act. Each corporation has said in its own way that following the rules could have negative repercussions, such as making things more expensive for customers or slowing down innovation.
Some people, meanwhile, have criticised Apple’s position. Consumer groups and EU legislators say the corporation is trying to transfer blame. They say that Apple’s study deliberately leaves out how the firm still has an impact on prices in other ways, such its control over how easy it is to find apps and its security requirements. Critics also say that Apple benefits when developers keep pricing high since the business still makes money on every sale, even if the rate is lower.
But Apple is right about one thing: rules frequently sound easier to follow than they are in real life. Lowering fees doesn’t mean that apps will be cheaper, just like expanding markets doesn’t mean that competition will be better. The way prices change, how people act, and what motivates developers are all far more complicated. As developers become used to the new system and competition grows, some of these savings may eventually reach customers. But for now, that effect is still small.
Apple’s announcement is a small but smart move. By saying that customers haven’t profited from the DMA, the corporation takes the focus off of itself and puts it back on the lawmakers. It makes the regulation seem well-meaning but wrong, which is a message that could appeal to both developers and regular users who prioritise safety and simplicity over regulatory experimentation.
This issue also shows a bigger truth about how the tech industry is changing in Europe. People are still working out how to find the right balance between innovation, competition, and rules. Apple’s answer indicates that even big companies have a hard time adjusting to new laws. This means that the road to a more equitable digital economy will be longer and harder than most people thought.
For now, people in Europe might not see much of a change in the prices of their favourite apps. But the fight between regulators and internet titans is nonetheless changing the way digital commerce works behind the scenes. It is still not clear if that will help the public or just move expenses around inside the sector.
