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Apple’s New Developer Fees Face Renewed Scrutiny from EU Antitrust Regulators

By  |  January 13, 2025
Apple

Apple’s recently introduced fees for app developers are under fresh investigation by European Union antitrust regulators, raising concerns about potential cost increases for software makers, Bloomberg reported on Monday, citing sources familiar with the matter. According to Reuters, the latest scrutiny centers on Apple’s “core technology fee,” a charge introduced in response to the EU’s Digital Markets Act (DMA).

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    The European Commission has circulated new questionnaires to gather more details about Apple’s revamped fee structure, Reuters noted. Regulators are reportedly assessing whether the updated charges could lead to higher costs for consumers or force developers to adjust their business models. Apple’s claim that the new system will reduce costs for developers is also being examined.

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    The company, headquartered in Cupertino, California, introduced a fee of €0.50 (approximately $0.51) per app installation as part of its efforts to comply with the DMA, Reuters reported. The DMA, designed to curb the dominance of major tech platforms, places strict requirements on large companies and allows for fines of up to 10% of a firm’s global annual revenue if they fail to comply.

    Related: EU Commission Watches Closely Apple and Google on DMA Compliance

    Apple’s new fees come at a time when Big Tech companies have been urging U.S. leaders, including President-elect Donald Trump, to push back against what they see as excessive EU regulatory action. The European Commission and Apple did not immediately respond to Reuters’ requests for comment.

    The company’s shares saw a drop of 1.8% in early trading following news of the EU’s renewed scrutiny. Regulators are particularly interested in whether developers might pass these additional costs on to consumers or whether the fees could disrupt current business models for app makers, per Reuters.

    Apple has faced increasing pressure from regulators on both sides of the Atlantic over the fees it charges developers for distributing apps through its App Store. The company, however, maintains that a significant portion of developers—about 85%—do not pay any commission fees.

    Source: Reuters