After a US court ruled Apple’s 27% commission on external payments illegal, major developers began switching to third-party payment systems en masse. As Bloomberg’s Mark Gurman writes, Apple may reduce the commission in the App Store to keep developers within its ecosystem. Experts suggest that the changes may happen in the near future.
Previously, Apple allowed alternative payments, but only under strict conditions. Developers had to warn users about the “risks of external systems” and still pay Apple a 27% commission. This largely negated the benefit of using third-party processors, which usually charge around 3%. However, according to 9to5Mac, these restrictions have now been lifted following the court’s decision. As a result, many developers have begun to abandon Apple’s built-in payment system.
The App Store generates about $20 billion a year for Apple through commissions ranging from 15% to 30%. In light of the ruling, the company faces pressure to either reduce its percentage or strengthen its focus on privacy and security to maintain developer loyalty and revenue. Gurman believes Apple will likely be forced to revise its rates soon—otherwise, it risks losing even more developers to external systems. We’ll keep you updated as more integrations become available.
Apple Faces Financial Pressure Amid Appeal
While Apple is appealing the court decision, the process could take time. In the interim, the company risks losing a significant portion of its profits if it does not revise its commission policy. For now, smaller and mid-sized developers are expected to remain within the Apple ecosystem, especially if commission rates are adjusted in their favor.
Built-in payments still offer notable convenience for users—there’s no need to enter payment information, as a simple double-click is often enough to complete a transaction, notes NIX Solutions. This could be one reason Apple remains confident in its system, but whether that’s enough to retain developers amid changing policies remains to be seen.
Apple’s next steps will be closely watched by both developers and users. With competition increasing and pressure mounting, a strategic shift in its App Store model seems increasingly likely. We’ll keep you updated as the situation evolves.