Apple is adding standardizing acceptance of NFT-based apps to be available on the Apple App Store. However, the company includes its standard transaction fees of 30% for all transactions, a mechanism that many NFT companies argue is unreasonable and simply not feasible for their storefront existence.
Let’s take a look at why this is happening and what we can expect going forward.
App Store Adjustment
In a report first reported by Aidan Ryan at The Information, Apple has told startups that NFTs are allowed to be sold in apps listed on Apple’s App Store, but that all NFT sales must make for in-app purchases, which would be subject to Apple’s exorbitant fees. As Ryan rightly points out, this has forced young projects and platforms to limit app functionality in an effort to dodge those 30% fees, despite Apple playing no role in facilitating these off-the-shelf transactions accept the presence of a respective application in the application. shop
Technology patent blogger FOSS Patents has noted that the actual costs to developers can often exceed the 30% commission often quoted when referring to the App Store; FOSS has argued that certain geographic areas are subject to fees that can be as high as 35% or so, and are forced to pay for search ads. Information founder Jessica Lessin shared a sentiment echoed by FOSS and comes as Apple’s commissions face immense criticism: “There are whole segments of the new economy that don’t go through the App Store?”
Apple (AAPL) price movement over the past month has been largely on par with the broader market. | Source: NASDAQ: AAPL on TradingView.com
Debate on fuel rates
Epic Games CEO Tim Sweeney shared his thoughts on the matter a tweet on Friday, describing the mechanics of the App Store as a “grotesquely expensive in-app payment service.” Sweeney has had a lot of controversy surrounding App Store fees since Epic’s flagship title “Fortnite” was removed from the App Store after Epic tried to circumvent the aforementioned fee structure. Sweeney has long argued that Apple’s commission rates are unfriendly to developers and leave little room for industry growth.
Previously, Sweeney took a neutral stance around NFTs, but Epic has since shown an attitude that it remains a developer-first (including NFTs or not). Other critics have argued that this position by Apple only bodes well for upcoming cryptonative competitors, such as the rumored “Solana mobile” project in the works.
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