Apple (APPL) DOJ suit could be another step towards lower app fees By Investing.com

Analysts at BofA said in a note Tuesday that they feel the DOJ suit against Apple (NASDAQ:) could mark another step towards lower app fees for subscription companies.

The US DOJ and 16 other state and district attorneys general filed a civil antitrust lawsuit against Apple, alleging monopolistic practices and anticompetitive behavior in the smartphone (iPhone) market.

The move follows several other recent cases/events centered around Apple and Google app store practices.

Analysts at BofA said that, in their view, “it is unclear that enabling cross-platform Apps or allowing competing Apps on the platform would necessarily lead to user migration (heart of the issue on competition) and that competing app stores are ‘”charging fees not too dis-similar from Apple'”, particularly on subscriptions.”

“However, given what appears to be some degree of momentum on app store practices, it is possible that further changes to app store fees or fees related to alternative payments could be introduced,” added BofA.

The bank believes that if this were to happen, it would be a positive for Match, Bumble, and, to a lesser degree, Duolingo’s gross margins and earnings.