Apple’s (AAPL) newly introduced ‘core technology fee’ for app developers has caught the attention of European regulators, according to Bloomberg. Apple introduced the fee as part of its strategy to comply with the EU’s Digital Markets Act (DMA), with the aim of promoting fair competition within the digital marketplace. However, this move has raised concerns among EU antitrust authorities about its potential to drive up costs for software developers.
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Apple’s Fee Under Investigation
The “core technology fee” charges developers €0.50 ($0.51) per app installation. Apple explains that this fee helps cover platform-related costs, including security, tools, and distribution services.
In light of this, EU antitrust regulators are closely watching to ensure Apple’s new fee structure aligns with the DMA. The investigation seeks to determine whether this fee restricts competition by creating additional financial burdens on developers or influencing their pricing strategies.
Developers Split on Impact of New Fee
Developers are divided over this change. While some see the fee as a fair way to share operational expenses, others argue it could reduce their profits. Smaller developers, in particular, may face challenges in absorbing these costs, as their budgets often depend on App Store revenue.
Meanwhile, the fees could indirectly affect consumers if developers choose to pass on the additional costs. This may lead to higher app prices or reduced availability of certain apps in the EU.
What Is the Price Target for AAPL?
Turning to Wall Street, AAPL has a Moderate Buy consensus rating based on 19 Buys, seven Holds, and three Sells assigned in the last three months. At $244.77, the average Apple price target implies a 4.42% upside potential. Shares of the company have gained over 28% over the past year.
