An Apple-funded study by Analysis Group (PDF) takes a close look at App Store pricing in the European Union before and after the Digital Markets Act (DMA) forced Apple to reduced App Store fees in the EU in March 2024.
“This study therefore demonstrates that commission savings as a result of the DMA have not led to price decreases for customers,” says author of the report, Jane Choi.
Choi’s report shows that while App Store fees typically fell around 10%, saving developers approximately $23.3 million 90% of developers kept their prices static or they actually raised them. While 9% of developers did lower prices, that was not a larger amount than before the fees were reduced.
An Apple spokesperson told MacRumors:
The DMA has failed to live up to its promises, delivering less security, less privacy, and a worse experience for consumers across Europe. 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.
While the European Commission had assumed that reduced fees for developers would result in savings for consumers, the study indicates that developers’ have not passed the savings on to customers in the form of lowered App Store prices.
41 million App Store transactions across 21,000 apps and in-app purchases were examined, comparing app prices for the 90 days before developers enrolled in the alternative App Store business terms to prices for the 90 days after they enrolled. On average, while fees dropped by 10%, consumer prices were not reduced 91% of the time. Some developers even raised prices after their enrollment.
The top five EU developers left their pricing unchanged even though they were paying reduced commissions, keeping the money for themselves.
While the DMA was intended to benefit EU developers, more than 86 percent of the savings going to developers located somewhere outside of the European Union.
When developers did lower prices, the average decrease was 2.5%, while developers kept the rest. The percentage of fee reductions did not change when taking a look at a longer eight-month period.
It should be kept in mind that the study is not an independent one, as it was at least partially funded by Apple. All data is limited to the App Store, and applies only to apps distributed through the App Store, not apps offered through alternative app marketplaces..
The full study can be found here: (PDF)
