A coalition of app developers is escalating pressure on European Union regulators to take decisive action against Apple's proposed fee structure for its App Store in the region. This push comes in the wake of a recent U.S. court ruling that found similar Apple practices unlawful, creating a stark contrast in how developers are treated on opposite sides of the Atlantic. The developers argue that Apple's compliance plan with the EU's Digital Markets Act (DMA) imposes harsher financial terms on European companies, putting them at a competitive disadvantage and undermining the law's intent to foster fair competition.
The Core of the Controversy: Apple's Proposed Fee Structure
At the heart of the dispute is the fee model Apple proposed earlier this year to comply with the EU's Digital Markets Act. The DMA requires "gatekeeper" platforms like Apple to allow developers to process payments outside their official app stores without charge. However, Apple's compliance plan introduced a complex "two-tier" system. For transactions processed through Apple's own App Store, the company would charge a commission ranging from 13% for smaller businesses to up to 20%. Crucially, for transactions processed through alternative, external payment channels—the very freedom the DMA is meant to enable—Apple would levy an additional "core technology fee" of 5% to 15%. Developers and the Coalition for App Fairness (CAF) contend that this structure effectively nullifies the benefit of using external payment systems, as the combined fees can be as burdensome as, or even exceed, the traditional App Store commission.
Comparative Fee Structures:
| Region | Context | Apple's Proposed/Charged Fee |
|---|---|---|
| European Union | App Store In-App Purchase | 13% - 20% commission |
| European Union | External/Alternative Payment | Additional 5% - 15% "core technology fee" |
| United States | Web-based Purchase (per court ruling) | 27% commission deemed unlawful; new rate to be negotiated or set by court. |
Note: The U.S. ruling specifically addressed fees on purchases completed outside the app (e.g., on a website), creating a direct point of comparison with the EU's external payment rules.
The U.S. Court Ruling That Changed the Game
The developers' campaign gained significant momentum following a pivotal ruling by the U.S. Ninth Circuit Court of Appeals in the ongoing Epic Games v. Apple lawsuit. The court found that Apple's practice of charging a 27% commission on web-based purchases linked from apps was anti-competitive and unlawful. The ruling instructed the parties to negotiate a new, fair rate or have one set by the court. This decision has created a direct comparative benchmark. Developers now argue that if such fees are being challenged and deemed unfair in the U.S., the European Commission cannot approve a system for its market that is arguably more restrictive and costly. They highlight the disparity, noting that U.S. developers may soon operate under more favorable terms than their EU counterparts, which contradicts the DMA's goal of creating a level playing field.
Recent Regulatory Timeline:
- Early 2025: European Commission fines Apple EUR 500 million (approx. USD 588 million) for preventing developers from steering users to alternative payment methods, a violation of the DMA.
- Following the Fine: Apple revises its EU terms, introducing the two-tier fee structure detailed above.
- December 2025: U.S. Ninth Circuit Court rules Apple's 27% fee on web transactions is anti-competitive.
- December 16-17, 2025: CAF publicly calls on the EU to reject Apple's plan, citing the U.S. ruling.
- January 2026 (Announced): Apple states further policy changes will take effect, but specifics are not yet public.
Mounting Pressure on EU Regulators
The Coalition for App Fairness, representing firms like Epic Games, Spotify, Deezer, and Proton, is now formally urging the European Commission to reject Apple's proposed fee structure. They emphasize that six months have passed since the EU fined Apple EUR 500 million for non-compliance with the DMA, yet a satisfactory resolution remains elusive. Gene Burrus, Global Policy Counsel for CAF, stated the coalition's position clearly: "We want the EU Commission to tell Apple that the law is the law and that 'free of charge' means free of charge." The group warns that the current situation forces European developers into an untenable choice: absorb the new fees, which hurts their businesses, or pass the costs onto European consumers, which damages competition and choice. They have called on regulators to be prepared to escalate the matter to the European Court of Justice if a satisfactory resolution is not reached.
The Stakes for the European Digital Market
The outcome of this standoff carries significant implications for the future of the app economy in Europe. The DMA represents one of the world's most ambitious attempts to rein in the power of major tech platforms and stimulate innovation. If Apple's fee model is allowed to stand, critics fear it will set a dangerous precedent, showing other gatekeepers how to technically comply with the law while maintaining their economic dominance. It risks rendering the DMA ineffective in its core mission. Conversely, a firm stance from the European Commission could force a genuine restructuring of app store economics, potentially leading to lower costs for developers, more innovation, and better prices for consumers. As the deadline for Apple's announced policy changes in January approaches, all eyes are on Brussels to see if it will enforce the letter and spirit of its landmark legislation.