Apple’s App Store revenue in the EU unchanged since Digital Markets Act went into effect

Evercore analyst Amit Daryanani is out with a new analysis that shows Apple’s EU App Store revenue data does not currently show any meaningful change to revenue levels since the company’s compliance with the Digital Markets Act.

Philip Elmer-DeWitt covers Daryanani’s note for Apple 3.0:
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The changes Apple implemented to comply with the DMA went into effect at the beginning of March and EU App Store revenue was +28% in March and +22% in April. March revenue was up 9% from the pre-DMA levels in February and April revenue was +6% vs. February.

The lack of impact is likely driven by the mechanism Apple implemented in order to comply with the DMA, which introduces a “Core Technology Fee” for any app that is downloaded from outside of the App Store. We estimate this fee would likely end up being higher than the 30% cut Apple takes on sales through the App Store, so it is unlikely any developer has chosen to move away from the App Store.

If the EU is able to successfully challenge the Core Technology Fee in court, then we may see more of an impact.

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MacDailyNews Take: As we wrote in December 2022:

Those who want safety, security, and privacy will stick to Apple’s App Store, but a single point of control is always a danger, especially when it comes to capricious censorship (see: pre-Musk Twitter, Apple’s App Store in China, etc.).

iPhone and iPad users must, like Mac users, have the ability to install third-party apps; even if they never do, for it will keep Apple honest. The ability to ban an app loses all power when it’s simply available in another App Store.

These moves, including removing the mandate to use WebKit, Apple’s Safari browsing engine, in third-party browsers, will greatly reduce, if not eliminate, the threat of anti-trust actions against Apple for the foreseeable future.
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