Apple fee practices demand action from EU, says App developers

A coalition of almost 20 app developers and consumer groups has called on European regulators to take action against Apple, citing unfair fee practices that disadvantage European developers compared with U.S. competitors.

As reported by Reuters, the European Union's Digital Markets Act DMA, implemented in 2023, mandates that large tech platforms labelled "gatekeepers," such as Apple, facilitate in-app transactions outside their ecosystem at no charge.

The appeal comes after a U.S. court ruling limited Apple’s ability to charge fees on external transactions.

European developers argue that Apple’s current App Store policies, which impose 13%-20% fees on purchases and 5%-15% penalties on external payments, continue to violate the EU Digital Markets Act DMA implemented in 2023.

The Coalition for Apps Fairness CAF, representing companies including Deezer and Proton, said the fee structure is “untenable and damaging to the app economy,” reducing transparency and stifling innovation.

CAF added that European developers are forced to either absorb the fees or pass costs to consumers, creating a disadvantage compared to U.S. rivals.

Despite Apple announcing further policy changes effective in January, developers say the lack of clarity fuels ongoing frustration.

Moreover, CAF’s Global Policy Counsel Gene Burrus urged the European Commission to enforce the DMA and escalate the issue to the European Court of Justice, insisting that “free of charge means free of charge.”

Additionally, the dispute underscores growing tensions between tech giants and regulators, as the EU seeks to ensure fair competition and protect smaller developers within its digital market.

The coalition's appeal reflects concerns over a disparity following a U.S. court ruling that restricts Apple's ability to impose fees on external transactions.

The European Commission earlier this year fined Apple 500 million euros ($588 million) for breaching the DMA by obstructing developers from guiding users to alternative payment methods.

In response to the EU ruling, Apple revised its terms to impose fees ranging from 13% for smaller businesses to up to 20% for App Store purchases, alongside penalties of 5% to 15% on external transactions.