EU's Digital Markets Act Failed to Lower App Store Prices, Apple-Commissioned Study Says

[justanotherdave]

What this report does is expose the ignorance of those who wrote the DMA.

Whether or not you want to believe this report is irrelevant when we have data to support it from other sources long before the DMA was written.

When fees dropped for small developers App prices didn’t drop. This happened on both The Ap Store and Google Play Store.

When subscription prices dropped to 15% for subsequent years most developers/content companies didn’t drop their prices after the first year.

Third party stores on Android (which have existed for years) didn’t see a shift to lower prices due to lower fees.



It’s beyond amazing the people who wrote the DMA had all this existing evidence before them and STILL used lower prices for consumers as a talking point.

 

[subjonas]

The European Commission believes that if developers pay reduced fees, those savings will be passed on to consumers through lower prices

They believe that??

 

[turbineseaplane]

What this report does is expose the ignorance of those who wrote the DMA.

Whether or not you want to believe this report is irrelevant when we have data to support it from other sources long before the DMA was written.

When fees dropped for small developers App prices didn’t drop. This happened on both The Ap Store and Google Play Store.

When subscription prices dropped to 15% for subsequent years most developers/content companies didn’t drop their prices after the first year.

Third party stores on Android (which have existed for years) didn’t see a shift to lower prices due to lower fees.



It’s beyond amazing the people who wrote the DMA had all this existing evidence before them and STILL used lower prices for consumers as a talking point.

I would agree that lower prices as the talking point is missing the mark.

As I mentioned a few posts back, a better argument revolves around consumer choice and more allocation of revenue to those creating the software (the developers).

 

[Unregistered 4U]

“Apple-commissioned study” agrees with Apple.

In this case, it’s widely available information. We all knew that companies weren’t going to lower their prices, it was only EU regulators that thought that, somehow, companies that have a vested interest in making a profit would not want to make a profit.

I doubt anyone else even empirically compares prices before DMA and after DMA because everyone knows what the results are.

 

[Unregistered 4U]

They believe that??

Yup! Then again, having driven out all the world class tech companies, they’d have no idea how world class tech companies operate.

 

[npmacuser5]

Developers make more profits that benefit consumers with more and better products, the goal. Maybe even employ more employees hired. The reduction of consumer prices is a secondary benefit and/ or less price increases later. Giving businesses a competitive playing field. Will it work? That will be seen later. This study is too early and too focused.

 

[PBG4 Dude]

Cigarette smoking doesn't cause lung cancer according to a study commissioned by Philip Morris International

I still remember when all the tobacco company CEOs testified to congress under oath that cigarettes were not addictive.

But yes, strong “we investigated ourselves and found we’ve done nothing wrong” vibes here.

 

[justanotherdave]

Their enormous, record-breaking profits suggest that it does, in fact, cover it.

A company making money in one division doesn’t mean they have to give things away or subsidize another division.

 

[justanotherdave]

I still remember when all the tobacco company CEOs testified to congress under oath that cigarettes were not addictive.

But yes, strong “we investigated ourselves and found we’ve done nothing wrong” vibes here.

Too bad, as I’ve already pointed out, the evidence for this existed long before the DMA.

So ignore the report if you like but you can’t ignore history.

 

[apparatchik]

Seriously? Apple went out of its way to charge developers extra to allow them to publish apps on other app stores and is now pretending to be shocked that prices didn't go down? The fox is guarding the henhouse, here.


No, Apple's choice to be actively hostile to users is what is leading to a worse user experience. The very fact that AirPods are getting Live Translation makes clear that it wasn't due to any EU law that it couldn't launch. They said PWAs on iPadOS couldn't be done in the EU anymore and rolled that back too despite nothing changing in the DMA. Their competitors are happily providing these features to EU users, despite having to follow those exact same laws.

The problem isn't the EU's laws. The problem here is Apple.

The fact that there are competitors providing said features (and Apple is a minority player in most EU countries), should be enough to stop considering Apple a gatekeeper to anything, users can freely choose from many other options, surely with lower prices, if we're to believe what you say.

 

[WarmWinterHat]

A company making money in one division doesn’t mean they have to give things away or subsidize another division.

That's not the consumer's problem, nor developer's problem, nor the the EU's problem. That's Apple's.

 

[Frantisekj]

“Apple-commissioned study” agrees with Apple.

You are right but Apple is wrong in its assumptions.

The DMA has failed to live up to its promises, delivering less security, less privacy, and a worse experience for consumers across Europe.

DMA has greatly succeeded because, it was exactly its intention. Security and privacy of users is the last interest of EU unelected bureaucrats. They are interested only in their privacy.

 

[Unregistered 4U]

Third party app stores will not be successful until they become international (beyond EU), because most developers will not do the extra work just for EU.

Except the large ones with the funds to do so, which was the point of the legislation.

 

[MacDaddyPanda]

Lol so this was like the equivalent of business corporate lobbyists lowering corporate taxes. Thinking it’ll lead to lower prices for the consumer.

 

[justanotherdave]

I would agree that lower prices as the talking point is missing the mark.

As I mentioned a few posts back, a better argument revolves around consumer choice and more allocation of revenue to those creating the software (the developers).

It’s not a poor talking point—it’s outright lying.

If you have a reason to implement policy then argue it based on facts. Don’t pad your argument with lies about supposed benefits. That makes the people in charge of the DMA liars since they had the evidence before them and STILL said it would lower prices.

 

[justanotherdave]

That's not the consumer's problem, nor developer's problem, nor the the EU's problem. That's Apple's.

No it’s the problem with consumers who think because a company makes a lot of money that it should be somehow passed onto them.

 

[ProbablyDylan]

I wish I had enough money to pay people to take my side even when I'm obviously in the wrong.

 

[I7guy]

[…]


or Apple can be the moral police and decide what apps (e.g. porn) you cannot have.

And if that’s a problem to you, there is always the competition.

 

[whatnot]

Majority of apps suspended from App Store in EU until prices go down: 'better broke than sorry', says CEO Dim Crook.

 

[spazzcat]

But at least now the business that did the work gets to keep their profits. Previously a company took 30% by force having done nothing at all 🤷‍♀️

Expect less people are buying their apps if it isn't in the Apple App Store ...

 

[now i see it]

The DMA was never about the consumer. Has always been about developers making more cash.

 

[turbineseaplane]

The DMA was never about the consumer. Has always been about developers making more cash.

Whether true or not, that result can still be good for the consumer.
Ultimately, I think developers should be retaining more of the value they've created.

 

[WarmWinterHat]

The DMA was never about the consumer. Has always been about developers making more cash.

That's fine by me as I'd rather developers have it than Apple.

..maybe they won't donate a chunk of it to the latest Whitehouse boondoggle.

 

[Naraxus]

Ultimately, I think developers should be retaining more of the value they've created.

Including Apple correct?

 

[ToothBlueth]

This whole report seems quite premature, as the EU is still looking into whether Apple is complying with the DMA.