A coalition of 20 app developers and consumer groups on are asking European regulators to enforce European Union (EU) laws against Apple, saying the company’s fee structure unfairly disadvantages European developers compared to their U.S. rivals after a recent court decision in the United States, reports 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 by the coalition of European developers reflects concerns over a disparity following a U.S. court ruling that restricts Apple’s ability to impose fees on external transactions, according to Reuters. Earlier this year European Commission fined Apple about US$588 million for breaching the DMA by obstructing developers from guiding users to alternative payment methods.
The EC — the executive arm of the European Union — claims that, under the DMA, app developers distributing their apps via Apple’s App Store should be able to inform customers, free of charge, of alternative offers outside the App Store, steer them to those offers and allow them to make purchases. The EC alleges that Apple fails to comply with this obligation.
Apple executives contend that the firm made a series of proposals to Brussels over the course of 2024 but was met with silence as to whether those proposals would put them on the right side of the law, according to correspondence seen by Politico.
In response to the EU fine, 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.
However, the Coalition for Apps Fairness (CAF) argues these revised fees still violate DMA stipulations and says that U.S. developers benefit from more favorable terms after the court decision. “This situation is untenable and damaging to the app economy,” CAF said in a statement to Reuters, accusing Apple of undermining transparency and stifling innovation.”
Article provided with permission from AppleWorld.Today
