Apple-Commissioned Study Finds App Store Fees in Line With Those at Other Digital Marketplaces

As Apple CEO Tim Cook gears up to testify in an App Store antitrust hearing before the House Judiciary Committee next week, Apple has commissioned a study from Analysis Group [PDF] that's designed to demonstrate how similar Apple's ‌App Store‌ fees and practices are to those of other digital marketplaces like the Amazon Appstore and the Google Play app.

appstore
Apple takes a 30 percent cut of all paid apps and in-app purchases, along with a 30 percent cut of all in-app digital subscriptions during the first year. That drops to 15 percent in the second year.

appstorecommissionrates
Analysis Group compared Apple's commission rates to those used by 38 digital marketplaces for apps and software, video game platforms, and found that most also take a 30 percent cut of sales. The Google Play Store, Amazon ‌App Store‌, Galaxy Store, Xbox, PlayStation, and Nintendo all have similar commission fees.

gamecommissionrates
Since Apple also sells other digital goods like books and music, the study covered commission rates for other digital content platforms like Kindle Direct Publishing, Nook, and Kobo, all of which collect between 30 and 65 percent from book sales on their platforms.

bookcommissionrates
When it comes to e-commerce marketplaces like Amazon, eBay, Etsy, Uber, Walmart, Ticketmaster, TaskRabbit, Poshmark, and more, fees range from 5 percent up to 37 percent.

ecommercecommissionrates
The study suggests that ‌App Store‌ developers earn "substantially higher share" of total sales than through brick-and-mortar channels. For video games, developers and publishers collect less than 45 percent of the retail price, and before digital marketplaces, 60 to 70 percent of software sales went to intermediaries rather than software creators.

As for Apple's rules that developers must use its in-app purchase options, the study suggests that's common for many e-commerce sites and services. Amazon, eBay, Etsy, and Walmart all have rules preventing sellers from directing buyers to external sites, as do Airbnb, VRBO, TaskRabbit, Upwork, and Spotify's SoundBetter.

The study concludes that Apple's ‌App Store‌ commission rates are in line with those charged by other digital content marketplaces, it's cheaper to distribute software digitally than through a brick-and-mortar store, and that Apple's rules about "free riding" are similar to the rules enacted by other companies.

Apple CEO ‌Tim Cook‌ is likely to cite this study when he testifies in front of the House Judiciary Committee on Monday. Cook is expected to be questioned about the ‌App Store‌'s fees and policies on rejection and competition. Cook's testimony is part of an antitrust investigation that won't directly lead to enforcement, but will govern future legislation that could regulate digital marketplaces.

The full Analysis Group study commissioned by Apple can be read here.

Popular Stories

iOS 16

iOS 16.4 for iPhone Nearing Launch With These 5 New Features

Monday March 20, 2023 11:50 am PDT by
Apple says iOS 16.4 is coming in the spring, which began this week. In his Sunday newsletter, Bloomberg's Mark Gurman said the update should be released "in the next three weeks or so," meaning a public release is likely in late March or early April. iOS 16.4 remains in beta testing and introduces a handful of new features and changes for the iPhone. Below, we have recapped five new features ...
iPhone 15 Pro Buttons CAD Leak

iPhone 15 Pro Leak Reveals Unified Volume Button and Mute Button

Monday March 20, 2023 8:33 am PDT by
As previously rumored, the next-generation iPhone 15 Pro and iPhone 15 Pro Max will feature a unified volume button and a mute button, according to leaked CAD images shared in a video on the Chinese version of TikTok and posted to Twitter by ShrimpApplePro. Instead of separate buttons for volume up and volume down, the iPhone 15 Pro models are expected to have a single elongated button for...
voice isolation

iOS 16.4 Adds Voice Isolation for Cellular Phone Calls

Tuesday March 21, 2023 11:01 am PDT by
The iOS 16.4 update that is set to be released to the public in the near future includes voice isolation for cellular calls, according to notes that Apple shared today. Apple says that Voice Isolation will prioritize your voice and block out the ambient noise around you, making for clearer phone calls where you can better hear the person you're chatting with and vice versa. Voice...
airpodsd 3 purple 4

iOS 16.4 Seemingly References New AirPods and AirPods Case

Tuesday March 21, 2023 11:43 am PDT by
The iOS 16.4 release candidate version that was provided to developers today appears to hint at a new set of AirPods that could be coming in the near future. According to @aaronp613, the beta features references to AirPods that have a model number of A3048 and an AirPods case with a model number of A2968. There have been no rumors that new AirPods are on the horizon, and it is early for...
maxresdefault

Nothing Launches $149 Ear (2) Wireless Earbuds to Compete With AirPods Pro 2

Wednesday March 22, 2023 9:48 am PDT by
Nothing today announced the launch of its second-generation wireless earbuds, the Nothing Ear (2), which offer many of the same features as Apple's AirPods Pro 2 at a lower price point. We went hands-on with the Ear (2) earbuds to see whether they're a viable alternative to the AirPods Pro 2 for those who want to save some cash. The Ear (2) earbuds are the successor to the Nothing Ear (1),...
iOS 16

Apple Seeds Release Candidate Versions of iOS 16.4 and iPadOS 16.4 to Developers [Update: Public RC Available]

Tuesday March 21, 2023 10:25 am PDT by
Apple today seeded the release candidate versions of upcoming iOS 16.4 and iPadOS 16.4 updates to developers for testing purposes, with the software coming a week after the launch of the fourth betas. The RCs mark the final version of the software that will be provided to the public in the near future. Registered developers are able to download the iOS 16.4 and iPadOS 16.4 updates...
apple park at night 1

Apple 'Tracking Employee Attendance' in Crackdown on Remote Working

Thursday March 23, 2023 3:41 am PDT by
Apple is tracking the attendance of its employees at offices using badge records in order to ensure they are coming in at least three times a week, according to Platformer's Zoë Schiffer. Since April 2022, Apple employees have been operating on a hybrid home/office work policy as part of a gradual return strategy following the pandemic, with staff required to work from the office at least...
iphone 14 pro max deep purple feature purple

iPhone 15 Pro Rumor Recap: 10 New Features and Changes to Expect

Thursday March 23, 2023 6:42 am PDT by
While the iPhone 15 series is still around six months away from launching, there have already been plenty of rumors about the devices. Many new features and changes have been rumored for the iPhone 15 Pro and iPhone 15 Pro Max in particular. Below, we have recapped 10 changes rumored for iPhone 15 Pro models that are not expected to be available on the standard iPhone 15 and iPhone 15 Plus:A1...