Apple may lower App Store commission rate to ‘stay competitive’, report suggests

In the latest edition of the Power On newsletter, Bloomberg’s Mark Gurman outlined some of his expectations for how Apple will remain competitive in the App Store payment processing market. Late last month, a judge ruled that Apple’s 27% commission on external payments was illegal. Many large developers have already begun implementing their own payment processing systems. Background In the United States, where most of Apple’s App Store revenue is generated, developers are now freely allowed to utilize payment processors outside of Apple’s own, which subjects developers to a 30% fee (or 15% if you’re a smaller developer). Previously, Apple did technically allow developers to implement their own payment processing system, though there were some contingencies: Developers had to include a “scare screen” warning users of the ‘risks’ of external payment processors And, developers needed to pay Apple a 27% commission, which essentially negated the point. Most payment processors charge a ... Read full article.