So, assuming the Dutch model is Apple’s negotiating position, those developers that are most affected will be those with larger businesses. The number of developers paying 27% will be relatively small, though the amount of cash they generate will not be.ĭevelopers are, of course, already complaining about Apple’s decision to require a 27% commission on sales made through its App Store - even though only one category of app is currently included.īut do they have a point? Apple’s fee is still far less than the commission (up to 60%) computer retailers once levied on boxed software sales. In 2020 alone, Apple prevented more than 3 million stolen cards from being used to purchase stolen goods and services.
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Apple takes cash to build developer tools and fraud control systems, in addition to the costs of monitoring available apps for quality and fraud. That 3% charge must also cover administration, refunds, subscription management, and more.
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That means that if Apple were to extend this new Dutch model into other app categories, most developers would probably pay just 12% commission for doing business at Apple’s store, plus a 3% charge toward whichever payment process they choose to support. Apple also charges a reduced 15% for subscription commissions after the first year. It’s important to note that most developers don’t pay a 30% commission. The company sliced commissions to 15% for developers who generate less than $1 million in sales in 2021 - and developers who don’t charge for their apps/services pay no commission at all. “To comply with an order from the Netherlands Authority for Consumers and Markets (ACM), Apple allows developers distributing dating apps on the Netherlands App Store to choose to do one of the following: 1) continue using Apple’s in-app purchase system, 2) use a third-party payment system within the app, or 3) include an in-app link directing users to the developer’s website to complete a purchase.” App commissions beyond dating It means sales (of dating apps, referred to as apps from now on) made via the App Store must still pay 27% commission, with up to 3% available to secure third-party payment and billing systems.
Apple’s model for the Netherlands has now been made available. Under this model, Apple will discount its standard 30% commission by 3%.
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