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

iPhone 16 Pro Sizes Feature

iPhone 16 Series Is Just Two Months Away: Everything We Know

Monday July 15, 2024 4:44 am PDT by
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
maxresdefault

Apple's AirPods Pro 2 vs. Samsung's Galaxy Buds3 Pro

Saturday July 13, 2024 8:00 am PDT by
Samsung this week introduced its latest earbuds, the Galaxy Buds3 Pro, which look quite a bit like Apple's AirPods Pro 2. Given the similarities, we thought we'd compare Samsung's new earbuds to the AirPods Pro. Subscribe to the MacRumors YouTube channel for more videos. Design wise, you could potentially mistake Samsung's Galaxy Buds3 Pro for the AirPods Pro. The Buds3 Pro have the same...
iPhone 15 Pro Cameras

iPhone 17 Pro Max Will Be First Model to Feature Three 48MP Cameras

Thursday July 11, 2024 12:20 am PDT by
Next year's iPhone 17 Pro Max will feature an upgraded 48-megapixel Tetraprism camera for enhanced photo quality and zoom functionality, according to Apple analyst Ming-Chi Kuo. In his n-iphone-tetraprism-upgrade-ca62dd37e364">latest investor note published to Medium, Kuo said the key specification change would be a 1/2.6" 48MP CIS sensor, up from the 1/3.1" 12MP sensor expected to be used...
Beyond iPhone 13 Better Blue Face ID Single Camera Hole

10 Reasons to Wait for Next Year's iPhone 17

Monday July 8, 2024 5:00 am PDT by
Apple's iPhone development roadmap runs several years into the future and the company is continually working with suppliers on several successive iPhone models simultaneously, which is why we sometimes get rumored feature leaks so far ahead of launch. The iPhone 17 series is no different – already we have some idea of what to expect from Apple's 2025 smartphone lineup. If you plan to skip...
primeday2020 feature3

The Best Early Prime Day Deals on Apple Products

Saturday July 13, 2024 6:23 am PDT by
Amazon is soon to be back with its annual summertime Prime Day event, lasting for just two days from July 16-17. As it does every year, Prime Day offers shoppers a huge selection of deals across Amazon's storefront, and there are already many deals you can get on sale ahead of the event. Note: MacRumors is an affiliate partner with Amazon. When you click a link and make a purchase, we may...