Snap is 'Happy' to Pay Apple's 30% Commission Rate, Says Evan Spiegel
Snap CEO Evan Spiegel today told CNBC that his company is "happy" to pay Apple's 30 percent cut of in-app purchases because of the benefits that Apple provides with its software and hardware.
We really feel like Snapchat wouldn't exist without the iPhone and without the amazing platform that Apple has created. In that sense, I'm not sure we have a choice about paying the 30% fee, and of course, we're happy to do it in exchange for all the amazing technology that they provide to us in terms of the software but also in terms of their hardware advancements.
Spiegel went on to say that Snapchat is "aligned" with Apple on the App Tracking Transparency changes implemented to protect privacy. "The early investments we made starting almost 10 years ago to protect user privacy on our platform are really paying off," said Spiegel.
Snap is working to help its advertising clients migrate to Apple's SKAdNetwork, which Apple has provided as an alternative to the Advertising Identifier. "So far, that transition has gone smoothly for our business," Spiegel said.
Spiegel's comments come on the last day of the ongoing Epic Games v. Apple trial, a legal battle that is taking place because Epic Games has rebelled against Apple's App Store fees and policies.
Epic Games attempted to skirt Apple's App Store rules with a direct payment option in the popular Fortnite game, leading Apple to pull the app and creating an antitrust dispute that will be decided in court. Epic Games does not want to pay Apple's 30 percent fee, and is lobbying for alternative payment options and alternative ways to install apps on iOS devices.
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