Apple is aggressively pushing into new areas of revenue, and the App Store is the most lucrative platform for the company. Since iOS is the only alternative to Android and has mass adoption in the U.S., U.K., and other developed countries, it is an enticing platform for developers to make money. But Apple won’t sit aside while developers use its platform to earn and leave it high and dry. Remember the much-talked “Apple Tax” during the Apple vs Epic lawsuit?
The 30% commission still exists, and Apple introduced new rules to not leave any stone unturned in its quest to boost revenue. Apple will now charge commission on the in-app purchases related to advertising for ‘boosting’ the reach of a social media post.
Why did Apple introduce new App Store commission system?
After decimating the ad revenue of social apps like Meta and Twitter, Apple doesn’t want any of the apps to allow purchases outside the app. It can levy commissions on all in-app transactions and doesn’t want app developers to accept payment from iOS users outside of the App. This is the first time any platform is charging commissions for advertisement transactions done in an iOS app. Apple clearly wants a cut from every purchase an iOS user makes – right from buying an app to purchasing in-app items.
But why aren’t developers pushing back? The answer is they simply cannot. Like Google, Apple is a monopoly in the iOS user segment and has all the power to demand a cut. The rules are simple – Apple gives a lucrative platform to host the app, and the developers need to pay lifelong commissions for it. Apple also opened up doors to allow advertising on App Store, which doesn’t work well for now. Some would even say, why not download your favourite app directly from the developer’s website?
Apple makes it impossible to sideload apps. Workarounds exist, but they aren’t as simple as a one-tap install and require some technical knowledge. Apple always hides behind security reasons for not allowing sideloading on iPhones even when the user wants to.