End of an Era as App Store Developers Seek Commissions Bypass
Following a report that Netflix may look for ways around Apple's steep App Store commissions, it's being reported that the entire app commissions ecosystem could come under fire. A report from Business Insider found that both app developers and regulators are considering pushing back on App Store commissions, which could result in Apple being forced to lower its rates.
As it stands, Apple's cut represents 30 percent of paid-apps, in-app purchases, and first-year subscriptions. That rate lowers to 15 percent for in-app purchases in year two and each year thereafter.
Business Insider found a Macquarie Research note in which the firm said that changes in the commission rates would have a meaningful impact on Apple's profits and suggested that the company could take a $16 billion hit to its adjusted earnings if it's forced to make a major cut to its App Store commission rates.