Nearly a week after Apple announced big changes to the App Store due to the European Union’s Digital Markets Act (DMA) rules, the company revealed that the EU market represents 7% of its global App Store revenues. Luca Maestri, the company’s chief financial officer, emphasized that the impact of these changes will depend on the choices made by developers to adopt different systems.
Key Takeaway
Apple’s App Store revenue in the EU accounts for 7% of its global revenue, and the company is making significant changes in response to the European Union’s Digital Markets Act (DMA) rules, sparking both support and criticism from industry players.
Apple’s Response to DMA Rules
Amid the changes brought about by the DMA, Apple noted a record quarter for App Store revenues, with the company’s overall services revenue reaching $23.1 billion, marking an 11% year-on-year increase. The company continued to defend the App Store and its commission ecosystem, highlighting its commitment to providing the best privacy and security for users.
Apple’s Efforts to Increase App Store Revenue
Apple is exploring various avenues to boost App Store revenue, including allowing streaming game stores for cloud gaming services to be distributed through the App Store globally. Additionally, the company is extending support for in-app purchase systems to mini-games, mini-apps, plug-ins, and chatbots.
Industry Reaction to Apple’s Changes
Industry reaction to Apple’s changes has been critical, with Spotify calling Apple’s DMA plan “extortion” and Epic Games CEO describing it as “malicious compliance” filled with “junk fees.” Meta CEO Mark Zuckerberg also expressed concerns about the onerous nature of Apple’s DMA rules during the company’s earnings call.
