Apple is facing a lot of pushback for its the “Apple Tax”, the 30% cut it takes from the majority of sales that go on within the App Store. Perhaps because of that, and any potential changes in the future, the company is warning investors that any change would not be great for financial results.
Bloomberg is reporting today that Apple has warned investors in a regulatory filing released today that any change to the App Store fees would result in a material negative impact for the company’s financial earnings moving forward. Of course, nothing has changed for Apple at the moment, despite seeing plenty of comments regarding the Apple Tax.
That means Apple is still charging 30% (the cut the company takes) for each sale made within the App Store. This has been the case since 2008, and, if it were up to Apple, probably wouldn’t change any time soon. Developers and companies have been asking Apple to reduce this fee for years now, but it’s only now in 2020 that it seems even remotely possible.
Per the report, this is what Apple told investors today:
If the rate of the commission that the company retains on such sales is reduced, or if it is otherwise narrowed in scope or eliminated, the company’s financial condition and operating results could be materially adversely affected.
Apple has faced a lot more scrutiny over the fees associated with the App Store for a few reasons. Most recently, a major antitrust investigation that included Apple (among other companies) over anticompetitive behavior. And of course, a few months ago Apple removed the popular battle royale game, Fortnite, from the App Store after developer Epic Games added a direct payment option, breaking the App Store rules in the process. (Google removed the game from the Play Store as well, and plans on making changes to its storefront to align more with Apple’s own practices regarding purchases.)
Apple just announced its quarterly earnings for the fourth fiscal quarter. The company revealed it brought in a revenue of $64.7 billion in the final fiscal quarter of 2020, and its Services division (which includes sales from the App Store) brought in over $14 billion.