U.S. Antitrust Regulators Investigating Apple's App Store Fees and Policies

As part of an ongoing antitrust inquiry into Apple's App Store policies, U.S. antitrust regulators are looking into the 30 percent cut that Apple takes from in-app subscriptions, reports Bloomberg.

appstore
Government lawyers have been meeting with developers over the course of the last several months, and in meetings as recent as last week, developers have been asked questions about Apple's subscription rules.

Apple requires developers to use its ‌App Store‌ payment system for subscriptions, an issue that was in the spotlight recently when email app "Hey" was rejected for requiring users to purchase a subscription on its website because the app's developers did not want to pay Apple's subscription fees. The problem was ultimately resolved, but it led to multiple developer reports about unfair treatment from Apple.

Developers have been questioned by government officials about the ‌App Store‌ review process, and at least one developer was asked if Apple lowering its 30 percent cut would solve concerns, but the developer in question told the DoJ that the problem is not the commission, but the fact that Apple doesn't allow for alternate payment systems.

Representative David Cicilline, Chairman of the U.S, House Subcommittee on Antitrust that's looking into Apple's ‌App Store‌ policies, earlier this month called Apple's fees "highway robbery" and said that Apple's rules are unfair to developers and hurt consumers.

The U.S. investigation into Apple's ‌App Store‌ practices is in the early stages, according to Bloomberg, with the U.S. Justice Department focusing most of its resources on a separate investigation into Google's dominance in digital advertising. The case against Apple has been described as "serious," however, but the inquiry is ongoing and no decisions have been made.

At the conclusion of the investigation, the antitrust committee will generate a report with recommendations on legislative action.

Apple is also facing a European antitrust complaint over its 30 percent cut on ebooks in the ‌App Store‌, brought about by Rakuten's Kobo subsidiary. Kobo said that Apple's rate is anti-competitive because of Apple's own Books service, which does not have to pay the same fee.

Popular Stories

iphone 16 pro ghost hand

5 Reasons to Skip This Year's iPhone 17 Pro

Thursday July 10, 2025 4:54 am PDT by
Apple will launch its new iPhone 17 series in two months, and the iPhone 17 Pro models are expected to get a new design for the rear casing and the camera area. But more significant changes to the lineup are not expected until next year, when the iPhone 18 models arrive. If you're thinking of trading in your iPhone for this year's latest, consider the following features rumored to be coming...
apple wallet drivers license feature iPhone 15 pro

Apple Says iPhone Driver's Licenses Will Expand to These 8 U.S. States

Tuesday July 8, 2025 11:26 am PDT by
In select U.S. states, residents can add their driver's license or state ID to the Wallet app on the iPhone and Apple Watch, providing a convenient and contactless way to display proof of identity or age at select airports and businesses, and in select apps. Unfortunately, this feature continues to roll out very slowly since it was announced in 2021, with only nine U.S. states, Puerto Rico,...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro to Reverse iPhone X Design Decision

Monday July 7, 2025 9:46 am PDT by
Since the iPhone X in 2017, all of Apple's highest-end iPhone models have featured either stainless steel or titanium frames, but it has now been rumored that this design decision will be coming to an end with the iPhone 17 Pro models later this year. In a post on Chinese social media platform Weibo today, the account Instant Digital said that the iPhone 17 Pro models will have an aluminum...
iPhone 17 Pro in Hand Feature Lowgo

Leaker Reveals Amount of RAM in iPhone 17 Through iPhone 17 Pro Max

Wednesday July 9, 2025 8:08 am PDT by
Three out of four iPhone 17 models will feature more RAM than the equivalent iPhone 16 models, according to a new leak that aligns with previous rumors. The all-new iPhone 17 Air, the iPhone 17 Pro, and the iPhone 17 Pro Max will each be equipped with 12GB of RAM, according to Fixed Focus Digital, an account with more than two million followers on Chinese social media platform Weibo. The...
apple account card feature

Apple Account Card Expanding to More Countries

Tuesday July 8, 2025 7:34 pm PDT by
Apple is expanding the ability to add an Apple Account Card to the Wallet app to more countries, according to backend Apple Pay changes. With iOS 15.5, Apple updated the Wallet app to allow users to add an Apple Account Card, which displays the Apple credit balance associated with an Apple ID. If you receive an Apple gift card, for example, it is added to an Apple Account that is also...
macbook pro blue green

M5 MacBook Pro No Longer Coming in 2025

Thursday July 10, 2025 12:38 pm PDT by
Apple does not plan to refresh any Macs with updated M5 chips in 2025, according to Bloomberg's Mark Gurman. Updated MacBook Air and MacBook Pro models are now planned for the first half of 2026. Gurman previously said that Apple would debut the M5 MacBook Pro models in late 2025, but his newest report suggests that Apple is "considering" pushing them back to 2026. Apple is now said to be...
iOS 26 Feature

Everything New in iOS 26 Beta 3

Monday July 7, 2025 1:20 pm PDT by
Apple is continuing to refine and update iOS 26, and beta three features smaller changes than we saw in beta 2, plus further tweaks to the Liquid Glass design. Apple is gearing up for the next phase of beta testing, and the company has promised that a public beta is set to come out in July. Transparency In some apps like Apple Music, Podcasts, and the App Store, Apple has toned down the...
iCloud General Feature Redux

iPhone Users Who Pay for iCloud Storage Receive These Five Perks

Wednesday July 9, 2025 9:20 am PDT by
If you pay for iCloud storage on your iPhone, did you know that Apple offers you five perks beyond the extra storage space, at no additional cost? Here are the perks included with all iCloud+ plans:Private Relay keeps your Safari browsing history entirely private from network providers, websites, and even Apple. Hide My Email generates unique, random email addresses whenever needed. Hom...

Top Rated Comments

ethanwa79 Avatar
66 months ago
I’m an app developer... I’ve been so for more than a decade. I had an app on the App Store in the first month of its launch in July 2008.

Here is why the 30% cut is a problem:

1. People argue that it’s the “storefront and distribution” and not just the payment processor that developers are paying for. But the reality is that free apps cost developers NOTHING (besides $100/year dev fee) to host on the App Store. And many of them make tons of money from ads within the app. But they own 0% to Apple. So why should paid apps have to subsidize free apps?

2. Payment processors typically take 1-3% of a transaction. Apple has a bit more convenience with in-app payments via Touch ID and Face ID, so let’s say 5%. Maybe even 10% if we are being generous. But 30%? Makes no sense except for a cash grab. It’s arbitrary. And when subscriptions are over a year, it’s 15%, which is still arbitrary.

3. The 30% wouldn’t be an issue if Apple allowed distribution outside of the App Store OR allowed developers to at the very least to advertise a different payment method within the app itself, even if it takes people out of the app for a purchase. Then devs would offer a “discount” to users for using a cheaper processor to save from the 30% rake. Which would in turn force Apple to be competitive in the cut, which is WHY they don’t want to allow outside payments.

4. But despite all of this, Apple does make exceptions to these rules to large companies with hidden contract terms no one knows about. “Reader” apps, for some reason, don’t have to follow these rules, such as Netflix. Why? Who knows. Apple just make up some rule to make them happy so they could be on their store. But the Hey email app wasn’t a “Reader” app so screw them right? Technologically there is no reason one should get hit with 30% and Netflix with 0%.

Apple has complete control and are using it to take arbitrary cuts of money for no real reason. There are millions and millions of iOS devices, WAY more than what Microsoft had with Windows when they got in trouble, and Apple owns large chunks of market share especially in North America and Europe.

I hope they are forced to change something.
Score: 43 Votes (Like | Disagree)
rjp1 Avatar
66 months ago
Remember when Apple didn't like the rates Qualcomm was charging them? Some people will defend them no matter what.
Score: 19 Votes (Like | Disagree)
topdrawer Avatar
66 months ago

How about just allowing customers to download apps from safari...just like on a Mac. That would allow competition in the payment field too
i think if people want to take the "security" risk, they should be allowed.

30 percent on distribution sales is one thing, but 30 percent on subscriptions is pretty steep considering they don't take responsibility in giving costumer support specific to those apps.
Score: 15 Votes (Like | Disagree)
LeeW Avatar
66 months ago
The vast majority of users see the app store and the way it works as a good thing, not sure that even given the choice, most would choose anything other than the app store to make payment. It's convenient and that is the way users want it.

Not saying it's being done right by Apple in relation to developers, but it does not change the fact that it works for users.

Again, people only see 30%, it is that in the 1st year then 15% in all others.
Score: 15 Votes (Like | Disagree)
albert421 Avatar
66 months ago
For anyone who has a problem with Apple's policy, I have only one thing to say. Why don't you build an "iPhone" and an "App Store" and charge people less on it.
Score: 15 Votes (Like | Disagree)
sw1tcher Avatar
66 months ago

Apple operates a store. They take up to a 30% cut of everything sold in their store. Simple. Every retail business operates this way. Why is it any business of the government to regulate this?
Every retail business does not operate that way.

If I buy a piece of software (game, anti-virus, Microsoft Office, etc.) for my PC at Target, Best Buy, Amazon, Newegg, etc., the retailer only gets a 1 time cut of the intial sale. The retailer I buy it from does not get a cut of the subscription month after month or year after year like Apple does.

Then there's the issue of me being able to sell/distribute my product where ever I want with other retailers. Developers can't do that with Apple. It's the Apple app store or it's nothing.
Score: 14 Votes (Like | Disagree)