Apple-backed report finds EU’s DMA hasn’t lowered app prices

A new Apple-commissioned study claims that the European Union’s Digital Markets Act (DMA) has not produced the consumer price cuts lawmakers promised. The report, conducted by economics consultancy Analysis Group, analyzed over 41 million App Store transactions and found that more than 90% of app prices in the EU remained unchanged or increased after developers began paying reduced commissions under the new rules.

The study examined developer pricing before and after March 2024, when Apple introduced alternative business terms in the EU allowing developers to distribute apps through different stores or use alternative payment systems. Those who opted to remain on the App Store under the new terms paid about 10 percentage points less in commission fees — typically 20% instead of 30%.

Despite these savings, the report found little evidence that developers passed the reductions on to users. In roughly 9% of cases, developers lowered prices, but most of those cuts were minor — averaging 2.5% — and consistent with typical fluctuations unrelated to the DMA.

Apple said the findings demonstrate that the regulation “has failed to live up to its promises,” arguing that it has introduced new risks for privacy and security while not benefiting consumers. The company also said developers collectively paid €20.1 million less in commissions, but that over 86% of those savings went to developers based outside the EU.

The report adds to the company’s growing criticism of the DMA, which was designed to reduce platform dominance by requiring major tech “gatekeepers” like Apple to open their ecosystems to competition. EU officials argued that allowing competing app stores and alternative billing options would lead to lower prices for consumers, but Apple maintains the data shows otherwise.

The findings align with Apple’s past experiences with fee reductions, including its Small Business Program, where most developers also kept prices stable despite lower commissions.

However, the study’s scope is limited to Apple’s App Store data and does not account for prices on alternative app marketplaces or web-based sales, both now permitted under the DMA. That omission leaves open the question of whether lower prices may appear outside Apple’s ecosystem as competition evolves.

The European Commission has not yet commented on the study’s findings, but regulators are expected to continue monitoring how the DMA impacts pricing, competition, and consumer choice in the months ahead.