Apple: App Store Fees Like Other Major Platforms

A study supported by Apple found that the commission rates on the tech firm’s App Store are comparable to those of other major platforms, researchers said in an Analysis Group report on Wednesday (July 22).

“Our study shows that Apple’s App Store commission rate is similar in magnitude to the commission rates charged by many other app stores and digital content marketplaces. The commission rates charged by digital marketplaces most similar to the App Store, such as other app stores and video game digital marketplaces, are generally around 30 percent,” the researchers wrote.

Apple has come under fire in recent years from developers who claim in a lawsuit the commissions and other pricing practices are anticompetitive. The U.S. Department of Justice also has looked into the allegations.

The report indicated other app stores and software distribution hubs are the nearest analogy to Apple’s app store service. The research examined the fees of big app stores such as the Galaxy Store of Samsung, the Amazon Appstore and the Google Play store in addition to technology like the Microsoft Store.

“All these app stores charge the same standard commission rate as Apple (30 percent),” the researchers said, noting the platforms have some particularities, especially when it comes to subscriptions.

Apple has a 30 percent commission for year one of subscriptions and its fee subsequently drops to 15 percent. “Commission rates of 15 percent for subscriptions after 12 months are on the low end of commission rates,” the researchers said.

The news comes as the chief executives of Apple, Amazon, Alphabet and Facebook are set to go before Congress in July as part of a government probe into their firms. The chief executives will reportedly have the ability to provide statements via digital means.

Apple, for its part, intends to release earnings on July 30, and analysts foresee the report to indicate some challenges from the fact that the tech company shuttered retail locations throughout the country for most of the quarter. But the company could be buoyed from consumers at home purchasing additional Apple products, especially MacBooks, iPhone SEs and AirPods.