Apple's New External Payment Options Face Limited Adoption by App Developers
In a recent revelation, only 38 out of 65,000 eligible app developers have embraced Apple's new external payment options, citing concerns over a 27% fee that can surpass the conventional 30% App Store commission. This disclosure came to light during a federal court hearing in the ongoing legal dispute between Apple and Epic Games. The tech giant's App Store policies are under global regulatory scrutiny, with Spotify challenging the fee structure and control over app marketplaces in the EU. According to Alex Roman, Vice President of Finance at Apple, none of the 38 applications for the new outside payments program originated from developers of major apps. This news underscores the continuing tension between app developers and Apple, amid close observation from regulators worldwide.
Key Takeaways
- Only 38 out of 65,000 eligible app developers have adopted Apple's new external payment options, highlighting widespread hesitance due to the 27% fee that can exceed the traditional 30% App Store commission.
Analysis
The limited adoption of Apple's new external payment options by developers indicates widespread reluctance due to the 27% fee, which can exceed the traditional 30% App Store commission. This revelation during the Apple-Epic Games court hearing further intensifies regulatory scrutiny of Apple's App Store policies worldwide, particularly from Spotify in the EU. The lack of participation from major app developers, as stated by Apple's VP of Finance, Alex Roman, highlights the escalating tension between Apple and the developer community. Consequently, financial instruments tied to Apple, such as stocks and bonds, may experience volatility, and the company's reputation could suffer long-term damage. Developers, too, may face uncertain revenue streams, while regulators may push for stricter app store regulations, impacting the entire tech industry.
Did You Know?
- External payment options: Payment methods that app developers can offer to users outside of the app store's own payment system, allowing them to avoid the app store's commission fees.
- App Store commission: The fee app stores charge developers for each sale, currently set at 30% for most apps by Apple.
- Regulatory scrutiny: The examination of a company's practices and policies by regulatory authorities, which can lead to legal challenges and penalties.