What is the Digital Markets Act (DMA)?

The Digital Markets Act is a European Union regulation designed to ensure fair competition in digital markets. It targets large tech companies (called "gatekeepers") like Apple, Google, and Meta, requiring them to open up their platforms and services to competitors. For Apple specifically, one key requirement is allowing app developers to use alternative payment systems outside the App Store, which could help them avoid Apple's commission fees.

How does Apple's commission system typically work?

Traditionally, Apple charges developers a commission on all in-app purchases and subscriptions processed through its App Store. This fee is typically 30% for the first year of a subscription and 15% in subsequent years. Before the DMA, Apple prohibited developers from directing users to alternative payment methods outside the App Store. This system effectively created a "toll" that developers had to pay to reach iOS users, impacting their profit margins significantly.

How might this policy change affect apps I use?

You might notice apps in the EU now offering alternative ways to pay for subscriptions or in-app purchases. For example, music streaming apps might direct you to their website to subscribe at a potentially lower price. Gaming apps might offer cheaper in-game currency when purchased outside the App Store. This could mean better deals for consumers, though the experience might require an extra step compared to the seamless in-app purchasing you're used to.

What's the potential investment opportunity here?

This regulatory change creates two main investment opportunities: 1) App developers (especially subscription-based services) could see improved profit margins by avoiding Apple's commission fees; and 2) Payment processing companies could gain access to billions in transaction volume that previously could only flow through Apple's payment system. Companies in both categories may see revenue growth and margin improvement as they adapt to and leverage this new regulatory environment.

Does this affect users and companies outside the EU?

Currently, these changes only apply within the European Union, as they're specifically mandated by EU regulation. However, regulators in other regions are watching closely, and similar rules could potentially be adopted elsewhere. Additionally, some companies might use their experience in the EU to lobby for similar changes in other markets, or to negotiate better terms with platform owners globally.

13 handpicked stocks

EU's Digital Markets Act Boosts App Economy

This collection features companies positioned to benefit from Apple's EU policy changes. App developers can now bypass App Store fees through alternative payment systems, potentially boosting their revenue, while payment processors gain access to new transaction streams.

Han Tan | Market Analyst

Published on June 30

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Spotify Technology SA

SPOT

Current price

$711.21

As a vocal critic of Apple's fees, Spotify is a primary beneficiary, able to steer its large EU user base to its own website for subscriptions, thereb...

As a vocal critic of Apple's fees, Spotify is a primary beneficiary, able to steer its large EU user base to its own website for subscriptions, thereby boosting profit margins.

PayPal Holdings, Inc.

PYPL

Current price

$68.37

PayPal is a globally recognized alternative payment system that app developers can now integrate into their websites to process payments outside of Ap...

PayPal is a globally recognized alternative payment system that app developers can now integrate into their websites to process payments outside of Apple's ecosystem.

Match Group, Inc.

MTCH

Current price

$34.63

Owner of Tinder, Hinge, and other dating apps, Match Group can significantly increase profitability on its subscription and in-app purchase revenue fr...

Owner of Tinder, Hinge, and other dating apps, Match Group can significantly increase profitability on its subscription and in-app purchase revenue from EU users.

ROBLOX Corporation

RBLX

Current price

$134.07

Electronic Arts Inc.

Current price

$200.95

Take-Two Interactive Software Inc.

TTWO

Current price

$256.76

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+23.47%

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About This Group of Stocks

Our Expert Thinking

The EU's Digital Markets Act is creating a more open app economy by requiring Apple to allow alternative payment systems. This regulatory shift presents a timely opportunity for both app developers who can avoid hefty commissions and payment processors who can capture new transaction volume.

What You Need to Know

This collection represents a tactical, event-driven investment opportunity focused on a specific regulatory change in a major market. Companies included span both sides of the value chain: app developers who can now route users to direct payment channels and payment processors providing the infrastructure.

Why These Stocks

These companies were carefully selected for their potential to leverage or enable alternative payment systems. The basket includes vocal critics of Apple's policies, subscription-based apps, gaming platforms, and payment technology providers positioned to benefit from this industry transformation.

Group Performance Snapshot

23.47%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 23.47% over the next year.

10 of 13

Stocks Rated Buy by Analysts

10 of 13 assets in this group are rated Buy by professional analysts.

2.8%

Group Growth

This group averaged a 2.8% return last month.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🔓

Breaking Down Digital Walls

App developers can now avoid Apple's 30% commission fees in the EU, potentially translating to immediate profit margin improvements for subscription-based services like Spotify and dating apps.

💸

New Money Flows

Payment processors like PayPal and Adyen are gaining access to billions in transaction volume that was previously locked inside Apple's ecosystem. This could significantly boost their revenue in Europe.

🎮

Gaming's Golden Opportunity

Mobile gaming companies spend billions on app store fees annually. Now, publishers like Electronic Arts and Roblox can direct EU players to alternative payment options, potentially keeping more of each dollar spent.

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