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Which Apps Bypass Apple’s 30% Commission
The Apple Tax doesn’t apply to everyone and the exceptions may not be who you expect
Apple’s 30% commission, often called the “Apple Tax,” has existed for app store apps since forever. However, until recently, when the Apple vs Epic/Minecraft legal battle hit the mainstream media, only app developers had heard of it.
Recently, tech giants such as Microsoft and Spotify have been among the many developers and companies that have backed Epic in their (epic) legal battle against Apple. This is not shocking, considering the fact that all app costs, subscription fees, and in-app purchases give Apple a 30% cut.
While Epic’s attempt to bypass Apple’s payment system triggered one of the most intense corporate tech showdowns in recent history, Apple actually does allow some companies to avoid paying the 30% commission fee.
There have been countless articles outlining the Epic vs. Apple legal battle, and even more that argue for one side or the other. At this point, it’s public knowledge that Apple takes a 30% cut for all payments through Apps downloaded through the app store (i.e. all iOS apps, since Apple has a monopoly on the iOS app store).
However, what’s less known is that some apps can bypass that 30% cut. What makes these apps so special that Apple chooses to give them a different set of rules?
When Does Apple Apply Fees?
According to Apple’s rules, the 30% commission fee is applied to all purchases that are “specific to iOS apps.” (Absolutely not the clearest instruction!)
Here’s an explanation in plain English: Apple takes the fee if the purchase allows usage of the iOS app, or enhances the use of the app itself.
So, all app store purchases and virtually all in-app purchases are subject to the fee. For example, when you buy a game from the app store, Apple takes a cut. In addition, if you buy more bullets to play Fortnite or buy more lives on Candy Crush, they must pay Apple Tax, as those payments all go towards enhancing this App-specific purchase.
So, while Spotify subscriptions (an app that allows you to stream music on your phone) must pay a fee, Uber…
