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Apple asserted that lower developer fees, mandated by the eu's digital markets act (dma), have not led to reduced prices for consumers On april 3, 2023, congress introduced the junk fee prevention act, which would require covered entities to “clearly and conspicuously display” the total price of an advertised good or service, “including any mandatory fees,” when the price is first displayed to consumers. A commissioned study found that 90% of developers either maintained or increased app prices after the fee cuts
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Apple argues the dma is failing to benefit users while simultaneously creating new barriers and risks for innovators and consumers. Drawing on examples from event tickets, hotels, cable bills, restaurants, and financial services, i show how these pricing practices increase search costs and equilibrium prices, distort consumer. Apple said wednesday that european union developers pocketed the savings from mandated commission reductions rather than lowering prices for consumers
The iphone maker commissioned analysis group to study pricing behavior [pdf] after the digital markets act forced apple to cut its app store fees from up to 30% to an average of.read full story
Legislative requirements and study design can determine the efficacy of a facility fee study in the context of enacting broader reforms States interested in reforming or studying facility fee billing practices can look to the experiences in states with recently mandated studies.
