Apple sued over "unfair" commission rate on iPhone apps

The company's monopoly of the iOS app market has come under fire again

iPhone X with notch

Apple is being accused of breaching antitrust laws due to its App Store being the only place iOS users can buy apps, which the company takes 30% commission of every single sale, it has been revealed.

The tech giant has had a case presented to the US Supreme Court by iPhone owners, saying it's unfair that no one else can profit in the same way as Apple from app sales.

However Apple's argues that it's down to the individual app developer to sell their app and they keep ownership of their creations - Apple does not own them or sell them - it merely provides the platform for sale and collects payments.

Apple also dragged other companies, including Microsoft and Google into the drama, explaining they too take a large chunk of commission from app sales when sold through their official app stores. Both Google and Microsoft take a 30% cut on anything sold on their app platforms. 

The court case is part of an older campaign presented to the courts back in 2011 that said Apple has breached antitrust law by holding a monopoly on iOS app sales. Although the case was dropped, it was re-kindled last year and Apple is now appealing against the claims.

"The Services category - which includes App Store commissions, alongside other media, content and services - is now Apple's second biggest driver of revenue after iPhone sales and has been its fastest growing source of revenues," Jack Kent, an analyst at IHS Markit, told the BBC.

"As many of Apple's device categories mature, services are vitally important as a means of driving incremental revenue after the device sale and also for tying users in to Apple's ecosystem of devices, apps and services."

Featured Resources

Managing security risk and compliance in a challenging landscape

How key technology partners grow with your organisation

Download now

Evaluate your order-to-cash process

15 recommended metrics to benchmark your O2C operations

Download now

AI 360: Hold, fold, or double down?

How AI can benefit your business

Download now

Getting started with Azure Red Hat OpenShift

A developer’s guide to improving application building and deployment capabilities

Download now

Most Popular

Should IT departments call time on WhatsApp?
communications

Should IT departments call time on WhatsApp?

15 Jan 2021
How to recover deleted emails in Gmail
email delivery

How to recover deleted emails in Gmail

6 Jan 2021
IT retailer faces €10.4m GDPR fine for employee surveillance
General Data Protection Regulation (GDPR)

IT retailer faces €10.4m GDPR fine for employee surveillance

18 Jan 2021