Apple’s new fees for app developers are facing renewed scrutiny from the European Union’s antitrust regulators over concerns that they could result in higher costs for software makers, as reported by Bloomberg News on Monday, citing sources familiar with the situation. The regulators have recently distributed a new set of questionnaires specifically targeting Apple’s newly introduced “core technology fee.”
This heightened scrutiny from the EU comes at a time when prominent figures in the tech industry have urged President-elect Donald Trump to challenge the European Union’s regulatory actions against American tech companies. Apple and the European Commission have yet to provide responses to requests for comment from Reuters. The company’s shares experienced a 1.8% decline in early trading.
The new fee, amounting to 0.50 euros ($0.5102) per installed app, was implemented by Apple to comply with the bloc’s Digital Markets Act (DMA). The DMA sets out guidelines for what actions the largest tech platforms globally are allowed to take and can impose fines of up to 10% of a company’s annual revenue.
Regulators are investigating whether the adjusted fees could potentially be transferred to consumers or if developers may need to adjust their business strategies due to Apple’s modified fee structure. Furthermore, they are assessing the accuracy of the company’s claim that the new system will result in cost reductions for developers.
Apple, headquartered in Cupertino, California, has been facing increasing pressure from regulatory bodies in both the United States and Europe regarding the fees it imposes on third-party developers who distribute apps through the App Store. Apple has stated that 85% of developers on the App Store are not subjected to any commission fees.
It is essential to note that the information provided is based on reports by Bloomberg News and has not been independently verified by Reuters. Rishi Kant in Bengaluru contributed to this report, with editing by Leroy Leo. The exchange rate used in this report is $1 = 0.9801 euros.
