Apple releases study defending its 30% cut on in-app purchases

Apple published a commissioned report on Wednesday defending the 30% commission the company takes from App Store transactions like paid applications and in-app purchases. According to the research, the Cupertino tech giant’s commission rate is comparable to its competitors in 38 digital content markets.

Apple defends its 30% commission rate

After facing judgment, suits, and anti-trust investigations on the issue, The company defended its app fees by publishing a commissioned report from Analysis Group. The report justifies the 30% commission Apple takes from App Store transactions since the rate is similar to other marketplaces in the tech landscape.

The research also shows that percentage rates charged by e-commerce marketplaces such and eBay and Amazon often exceed the standard 30% commission rate.

Apple

The findings of the study conclude:

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%. Marketplaces that distribute digital content such as videos, podcasts, eBooks, and audiobooks generally charge commission rates of 30% or more. Commission rates charged by e-commerce marketplaces vary by industry but sometimes exceed 30%.

The complete study titled “Apple’s App Store and Other Digital Marketplaces” by the Analysis Group can be found here.

Apple under antitrust investigation

This report has been released at a difficult time for the company. Recently in June, the European Commission officially opened two formal antitrust investigations into the company, over its App Store and Apple Pay.

According to the EU, limitations and stipulations put forward by the tech giant may be twisting the company’s competition in many ways. Along with reviewing whether or not the company violates EU competition rules and regulations, the commission will also focus on the developer’s ability to inform users about cheaper options for the app.

App Store Apple EU

Recently, the company’s CEO Tim Cook has stated that Apple is committed to encouraging and nurturing the global App Store community and that it continues to “foster innovation, create jobs, and propel economic growth for the future.”

About the Author

Mobile gaming editor for iThinkDifferent