Study Defends And Compares Apple's App Store Commission Rates

A new study out from Analysis Group suggests that Apple's App Store commission rates are similar in magnitude to the commission rates c...

A new study out from Analysis Group suggests that Apple's App Store commission rates are similar in magnitude to the commission rates charged by many other app stores and digital content marketplaces.

The study compares Apple's App Store fees and practices with other digital marketplaces. It found that in addition to App Store, the Google Play Store, Amazon ‌App Store‌, Galaxy Store, Xbox, PlayStation, and Nintendo all have similar commission fees.

Because Apple also sells ebooks on its platforms, the study also covered commission rates for other digital content platforms including Kindle Direct Publishing, Nook, and Kobo, all of which collect anyway between 30 and 65 percent from book sales on their platforms.

Interestingly, the study also pointed out that many sellers currently sell (or previously sold) their goods through brick-and-mortar stores and marketplaces, however, generally earn a substantially lower share of total revenue from the distribution through brick-and-mortar channels and marketplaces than through digital marketplaces such as the Apple App Store.

When it comes to the App Store policy that require developers to use Apple's in-app purchase options, the study notes that many e-commerce sites and services have a set of rules in place to prevent sellers from directing consumers to external sites and marketplaces.

The bottom line is that, Apple's App Store fees and practices are in line with other digital content marketplaces, and that Apple "uses a strict vetting process to review the apps, ensuring that they are safe, reliable, and bring value to customers."

Apple CEO Tim Cook will testify before congress next week as he will be questioned about App Store fees and policies.