Technology media outlet 9to5Mac reported yesterday (November 12) that Apple Inc. had recently commissioned a third-party institution to investigate, and that the latest report confirms the Digital Markets Act (DMA) in the European Union has failed to lower app prices effectively.
The report’s core conclusion highlights that, while the DMA aims to lower prices through increased competition, in reality, this objective has not been met. Apple argues that the study proves the DMA did not bring price relief to European consumers.
Under the DMA, tech giants like Apple are defined as “gatekeepers” and are required to open their ecosystems to promote fair competition in the market.
As a result, Apple was compelled to permit third-party app stores on iPhones in the EU region and to offer alternative commercial terms with lower commission rates for developers. The EU expects these measures to reduce developer costs and ultimately pass the savings on to consumers in the form of lower app prices.
However, the study commissioned by Apple and executed by The Analysis Group reached the opposite conclusion. It specifically analyzed three commission-reduction measures (including the introduction of third-party app stores, lowering commission rates in the EU, and the earlier launched small-business program) and their impact on app pricing.
According to a report cited by modezon.com, the institution reviewed over 21,000 affected apps and 41 million transaction records, finding that approximately 90% of developers did not lower the price of their apps or in-app purchases after their operating costs declined.
For the small number of developers who did reduce prices, the reductions were minimal: on average, the price decrease was only about 2.5%, far lower than the commission cost savings developers realised.
In its statement, Apple emphasised: “The DMA has failed to deliver on its promise, and instead leads to lower security and privacy protection, as well as a poorer user experience for European consumers. This study further proves that the DMA has not benefited consumers through lower prices.”
The media further noted that although Apple funded the research, The Analysis Group is a well-reputed institution, and so its data and conclusions carry higher credibility. The media analysis also noted that developers may have chosen to invest the commission savings in improving app functionality and performance, which could indirectly benefit consumers.
The above content is compiled by ModeZone, a fashion and entertainment magazine.
