Shortly before the antitrust hearing on July 27, Apple released a new study, in an attempt to show that the supplies acquired from the App Store are in line with those of others. App Stores and digital content markets. The company's attempt to prove that its App Store practices align with those of other digital markets comes shortly before a hearing before the Federal Trade Commission's antitrust representative, where Apple CEO Tim Cook will be asked about the practices. followed by the company, but also as to whether it has stifled competition. Amazon's top executives will also testify at the antitrust hearing Facebook, Alphabet and Google.
The study conducted by Analysis Group, compared the Apple App Store's commission rate with other digital app markets, such as Google Play Store, the Amazon App Store, Samsung Galaxy Store and the Microsoft Store, as well as other markets managed by companies such as Airbnb, Uber and Epic Games.
According to the study, Apple charges a 30% commission when device owners download paid apps and make in-app purchases of digital content, services and subscriptions, leaving developers with 70% of sales. For in-app subscriptions, Apple charges a 30% commission for the first year and after that, Apple's commission is reduced to 15%.
Other major App Stores such as Google Play Store, Amazon App Store, Samsung Galaxy Store and Microsoft Store also have a 30% commission for app downloads and in-app purchases, but each has its own set of exceptions. For example, Google Play subscription rate is 15% after 12 months, Amazon commission is 20% subscription fee video streaming and the Galaxy Store charges a 30% standard commission price, but has stated that this price is negotiable.
The study also added that stores that do not operate now, such as BlackBerry World, the Windows Phone Store and Nokia Store also had similar commission rates of around 30%.
In addition, the study found that the fees received from digital markets are justified as they allow and facilitate transactions, while also making investments that support the download of applications and in-app purchases.
The study also found that Epic Games, the maker of the popular Fortnite video game, charges only a 12% commission. Epic Games CEO Tim Sweeney has tweeted his opposition to the Apple App Store business model. In addition, the study found that Apple imposes in-app purchasing guidelines that prevent users and developers from "free riding" to the services and investments of the Apple App Store. For example, apps may not explicitly prevent app users from purchasing within the app by providing external links that bypass the app store.
Apple is subject to a series of inspections by the Department of Justice USA since June 2019, when it launched an antitrust investigation into the competitive technology landscape in the US. And now, he is preparing to testify at the antitrust hearing.
The European Union also launched antitrust investigations last month to determine if Apple's rules for developers distributing applications through the company's App Store, violate its competition rules EU.