Apple's fees on outside App Store purchases under fire, developers demand EU action

Under DMA, Apple is required to allow in-app transactions outside App Store without charging a cut

By
Geo News Digital Desk
|
Apples commission on app purchases in hot water, developers demand EU action
Apple's commission on app purchases in hot water, developers demand EU action

An alliance of 20 iOS app developers and consumer groups has urged European regulators to take action against Apple's commission on external purchases from its proprietary marketplace App Store.

The association is of the view that Apple's fee structure unfairly disadvantages European developers compared to their U.S. counterparts.

The appeal comes on the heels of a recent U.S. court ruling that limits Apple's ability to impose fees on app purchases taking place outside of the App Store.

Under the European Union's Digital Markets Act (DMA), which took effect in 2023, large tech giants like Apple are required to allow in-app transactions outside their ecosystem without charging a cut.

Earlier this year, the European Commission fined Apple €500 million ($588 million) for violating the DMA by preventing developers from directing users to alternative payment methods.

Responding to the EU ruling, Apple revised its fee structure, imposing charges ranging from 13% for smaller businesses to 20% for App Store purchases, along with penalties of 5% to 15% on external transactions.

The Coalition for Apps Fairness (CAF), which includes companies like Deezer and Proton, argues that these fees are still not abiding by DMA requirements and thus unfairly favouring U.S. developers.

CAF's Global Policy Counsel Gene Burrus stated that European developers are required to either bear these costs or pass them onto consumers, harming both European businesses and customers.

Despite Apple’s announcement of further policy changes scheduled for January 2026, unclear details are leading to frustration among developers, with the coalition calling on the EU Commission to enforce the law and ensure that "free of charge means free of charge."