Apple’s controversial policy of taking up to a 30% cut of purchases made through the App Store is actually similar to the commission rates charged by other digital marketplaces, claims a new study commissioned by Apple from economic consulting and strategy firm Analysis Group.
The report comes just days before Apple CEO Tim Cook, along with CEOs from Alphabet, Amazon, and Facebook, is set to testify before Congress as part of an antitrust hearing.
It’s also a sign of Apple using all the tools it has at its disposal, including, in this case, funding research, to combat criticisms of anticompetitive practices.
The data, published on Wednesday, July 22, comes after Apple has come under scrutiny for its App Store policies, particularly its requirement that developers must use Apple’s payment system of which it takes up to a 30% cut.
The Apple-supported study shows that other major tech companies like Google, Amazon, and Samsung also charge 30% commission rates for their respective app stores. For subscriptions, Apple drops that rate to 15% after the first year, much like Google.
“Our study shows that Apple’s App Store commission rate is similar in magnitude to the commission rates charged by many other app stores and digital content marketplaces,” wrote the authors of the study. “The commission rates charged by digital marketplaces most similar to the App Store, such as other app stores and video game digital marketplaces, are generally around 30%.”
Full Content: Business Insider
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
DirecTV and Disney Resolve Dispute, Restore Programming for Subscribers
Sep 15, 2024 by
CPI
UK Antitrust Authority Raises Concerns Over Vodafone-Three Merger
Sep 15, 2024 by
CPI
Brazilian Supreme Court Lifts Freeze on Starlink Accounts, Transfers $3.3 Million to National Treasury
Sep 15, 2024 by
CPI
Steptoe Expands Antitrust Practice with Key London Hire
Sep 15, 2024 by
CPI
Instant Ad Auctions at the Heart of Google’s Federal Monopoly Case
Sep 15, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Canada & Mexico
Sep 3, 2024 by
CPI
Competitive Convergence: Mexico’s 30-Year Quest for Antitrust Parity with its Northern Neighbor
Sep 3, 2024 by
Francisco Javier Núñez Melgoza
Competition and Digital Markets in North America: A Comparative Study of Antitrust Investigations in Mexico and the United States
Sep 3, 2024 by
Julio Garcia
Recent Antitrust Development in Mexico: COFECE’s Preliminary Report on Amazon and Mercado Libre
Sep 3, 2024 by
Alejandra Palacios Prieto
The Cost of Making COFECE Disappear
Sep 3, 2024 by
Mateo Fernández