Apple and DMA: Why Europe's developers are protesting

Apple is once again under pressure in Europe. The trigger is new court rulings in the US, which many developers believe go significantly further than the measures Apple has implemented so far in the European App Store. While the EU Commission has signaled its general satisfaction with Apple's adjustments to comply with the Digital Markets Act, resistance is growing within the developer community. The accusation is that Apple is imposing less favorable conditions on European developers than on their US counterparts.

At the heart of the debate is the question of whether Apple is truly implementing the Digital Markets Act (DMA) in a way that promotes fair competition or merely complying with its formalities. Developers point to a recent ruling in the antitrust case between Apple and Epic Games in the US and demand that European authorities use this ruling as a benchmark for stricter enforcement of the DMA. The comparison between the US and the EU plays a central role in this discussion.

Developers are calling for stricter enforcement of the DMA

As Reuters reports, the Coalition for App Fairness is appealing to European regulators. The organization argues that Apple's planned fee structure for app developers in the EU is worse than the regulations that are set to apply following the recent US court ruling.

The Coalition for App Fairness was founded in 2020. Participating companies include Basecamp, Deezer, Spotify, Tile, and Epic Games. The organization's goal is to promote freedom of choice and fair competition across the entire app ecosystem. Since its inception, the coalition has recruited additional developers to increase political and regulatory pressure on major platform operators like Apple.

US court ruling as a new benchmark

The current criticism stems from a ruling by the 9th US Circuit Court of Appeals in the antitrust case between Apple and Epic Games. The court ruled against Apple's planned 27 percent commission on web-based purchases. Both companies were ordered to either negotiate a new commission rate or leave the decision to the court.

Many developers view this ruling as a clear restriction of Apple's previous fee practices. According to assessments within the developer community, the decision demonstrates that Apple's control over payment flows and commissions is legally vulnerable.

Criticism of Apple's EU fee model

Against this backdrop, the Coalition for App Fairness is particularly critical of Apple's planned EU model. In Europe, Apple envisions a two-tiered system. This includes App Store fees of up to 20 percent, as well as additional fees of between 5 and 15 percent for external transactions, i.e., payments that are not processed directly through Apple's own system.

CAF believes such a structure should not be permitted under the Digital Markets Act. The organization argues that these fees put European developers at a disadvantage compared to US developers.

Reuters quotes CAF as saying that developers in the EU are forced to either absorb these additional costs themselves or pass them on to customers. In either case, this creates an economic disadvantage, particularly compared to developers in the United States, who can expect more favorable conditions following the recent court ruling.

Persistent discrimination despite EU penalty

Another point of criticism concerns the enforcement of the DMA to date. Around six months ago, the EU fined Apple €500 million for violating the law. However, according to the Coalition for App Fairness, the situation for many European developers has hardly improved since then.

Local developers remain at a disadvantage despite Apple's official adjustments. The CAF sees this as a sign that the measures taken so far are insufficient to effectively limit Apple's market power.

CAF Director Burrus is therefore calling for a clearer approach from the EU Commission. Apple must be made unequivocally aware that applicable law will be consistently enforced. His statement succinctly summarizes the demand: the law is binding, and if something is declared as free, it must actually be free.

In addition, the CAF suggests that the European authorities should consider referring the case to the European Court of Justice if Apple continues to adhere to its fee structure.

Competition law and Apple in international comparison

The dispute surrounding Apple, the App Store, and the Digital Markets Act illustrates the stark differences in how competition law is enforced on both sides of the Atlantic. Recent US court rulings are increasing pressure on the EU to take a stricter stance toward Apple. Whether the European Commission heeds these demands will likely be crucial in determining whether European developers can operate under comparable conditions to their US counterparts. The debate surrounding Apple's role in the digital ecosystem thus remains open. (Image: Apple)