“Literally 10 times higher than they should”: Elon Musk now puts App Store fees in his sights

The CEO of Tesla, Elon Musk, has protested the commissions that Apple applies to sales through the App Store. A protest that comes at a time when some claim discredit a business model that is practically a standard in the industry.

Recovery of investment in development, APIs, services, operating systems, etc.

The new twitter ownerfairly, has tweeted that he thinks commissions are “literally 10 times higher than they should be.” A statement that requires some clarification, starting with the fact that a large number of App Store applications (those that invoice less than one million dollars per year) have seen commissions reduced to 15% through the small business developer program.

We must also not lose sight of the fact that there are other ways to monetize applications that do not pay any commission, nor forget that this is the business model also present in the Google Play Store or app/game stores like that of the same Epic Games, Microsoft or others. let’s remember the thunderous silence of Epic Games before the iron control of video consoles in their crusade against the App Store.

That said, it seems that the Apple model is clear. As is clear from the reduced commission of 27% that Apple will charge to dating apps in the Netherlandsthe payment processing through iAPs is calculated as 3%, which also carries customer support, refunds and other procedures. The rest, either up to 30% or 15% monetization of invested resources is considered in R&D for the different operating systems, APIs, services, development environments, etc.

Regardless of how you look at the commissions that Apple applies to sales in its app store, the truth is that each company has the right, and the duty to its investors, to monetize their investments. For now we can only wait for the antitrust investigations to reach their own conclusions, given what was seen in the sentence of the trial of Apple against Epic Gameswe can take some surprise.

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“Literally 10 times higher than they should”: Elon Musk now puts App Store fees in his sights