Apple’s App Store Commission and Its Effects on the Industry

Apple’s App Store Commission and Its Effects on the Industry

Apple’s 30% commission on applications and services offered in the App Store is facing increasing backlash. This high rate poses a problem for many developers and gaming companies. Notably, the legal battle initiated by the giant gaming company Epic Games against Apple, which directed players to its own website, marked a turning point in this matter. Epic’s struggle also led to Apple being investigated under antitrust allegations by the European Union.

A similar situation is occurring in the United Kingdom. The UK Competition and Markets Authority (CMA) revealed responses received from various technology companies as part of a market investigation into current mobile browsers and cloud gaming supply. In this context, Microsoft’s statements targeting Apple’s 30% commission held a notable place.

In the past, Apple has put forward various excuses for the 30% commission it takes from sales; these included justifications such as hosting infrastructure and making developers’ applications more discoverable. However, Microsoft has never been convinced by these justifications. According to Microsoft, when it comes to in-app purchases, the services provided by Apple do not contribute to purchases, discoverability, or accessibility. At this point, Microsoft’s views seem quite justified.

Microsoft emphasizes that Apple’s in-app purchase fee is “neither economically sustainable nor justifiable.” Furthermore, the rules set by Apple make it nearly impossible to generate revenue from cloud gaming services on iOS, as it does not allow for additional charges to cover fees collected from iPhone users.

Commission Rate and Its Effects on the Industry

Apple’s demanded 30% commission rate is mocked in the industry as a “racket.” However, this high rate negatively impacts many small developers by consuming a large part of their earnings and making it difficult for them to sustain their businesses.

• A similar commission rate is also found on the game distribution service Steam.
• Steam cuts a 30% commission fee from game publishers, which is why it frequently faces antitrust investigations.
• Small game developers may have to shut down because they cannot find the financial support they need.
• Epic Games, a competitor of Steam, is trying to restore balance in the industry by applying a 15% commission rate in its own store to overcome this negative situation.

In conclusion, Apple’s 30% commission rate continues to be a significant barrier for many players in the industry, negatively affecting both large and small developers. These debates in the gaming world could shape future trade dynamics.