Apple Inc’s practice of retaining a percentage of transactions made through its app store is once again in the spotlight. In China, the “Apple tax” is the highest globally, with rates of 30 percent for standard enterprises and 15 percent for small businesses. These figures surpass the rates in the European Union, which are set at 17 percent for standard enterprises and 10 percent for small businesses. However, the EU’s comparatively lower rates are the result of stringent antitrust actions taken against Apple.
In a significant development, the EU levied a fine of 1.84 billion euros ($2.04 billion) against Apple for leveraging its dominant position in the music streaming app market.
Presently, app developers in the EU market are subject to a 17 percent commission fee, which is set to decrease to 10 percent for most developers and subscribers after a year. The EU’s approach to digital economy regulation is rooted in it providing a stringent legal framework for tech companies operating in Europe, with an emphasis on compliance and high standards. The Digital Markets Act, a key antitrust measure introduced by the EU, aims to curb monopolistic practices by large platforms, ensuring greater consumer choice.
The EU’s proactive measures in regulating tech giants offer valuable insights and lessons for other jurisdictions grappling with similar issues. By upholding strict governance principles and holding large corporations accountable, the EU has set a precedent for promoting fair competition, protecting consumers, and fostering a healthy digital marketplace.