Apple App Store Fees Face Pressure From EU Developers

A collection of app developers and consumer groups want Europe to enforce laws against Apple.

The Coalition of App Fairness (CAF) on Monday (Dec. 15) issued an open letter to the European Commission (EC) accusing the tech giant of “persistent” non-compliance with Europe’s Digital Markets Act (DMA).

The letter follows findings from the EC that Apple had violated the DMA by keeping developers from directing users to alternative payment methods, fining the tech giant $588 million.

Apple in turn revised its terms for its app store to impose fees that ranged from from 13% for smaller businesses to up to 20% for App Store purchases. However, the CAF says Apple has not addressed what it calls a core issue: the company’s fees are preventing fair competition.

“The law says that gatekeepers like Apple must allow developers to offer and conduct transactions outside of the App Store free of charge,” the letter said. “However, Apple is now charging developers commission, fees of up to 20% for such transactions. This is a blatant disregard for the law with the potential to vanquish years of meaningful work by the Commission.”

The CAF also notes that Apple plans to introduce new terms and conditions for the App Store next month, and says it suspects the new terms will include fees that violate the DMA.

“Apple cannot be permitted to exploit its gatekeeper position by holding the entire industry hostage,” the letter added.

PYMNTS has contacted Apple for comment but has not yet gotten a reply. The company had in September called on the commission to rethink the DMA, which was created to prevent market abuse by tech giants doing business in Europe.

“Over that time, it’s become clear that the DMA is leading to a worse experience for Apple users in the EU,” Apple wrote in a blog post. “It’s exposing them to new risks, and disrupting the simple, seamless way their Apple products work together. And as new technologies come out, our European users’ Apple products will only fall further behind.”

In its blog post, Apple argued the DMA requirements for allowing other app marketplaces and alternative payment systems don’t take into account the privacy and security standards of the App Store, putting customers at risk for being overcharged or scammed.

“The DMA also lets other companies request access to user data and core technologies of Apple products,” the company wrote. “Apple is required to meet almost every request, even if they create serious risks for our users.”