App Store Fees (30% Vig)

Alternative Term

Monopoly Tax

Affected Transactions

Sales of digital goods and services, subscriptions, in-app purchases

Standard Commission Rate

30% for digital goods and services

Subscription Commission Rate (Year 1)

30%

Small Business Program Commission Rate

15% (for developers making up to $1 million USD in the prior calendar year)

Subscription Commission Rate (Subsequent Years)

15%

2024

Ongoing

Ongoing

Ongoing

Ongoing

rate was 30% for the sale of digital goods and services; for subscriptions, it was 30% for the first year and 15% for any subsequent years. Developers who made up to $1 million USD in the prior calendar year for all of their apps, as well as developers new to the App Store, qualify for the Small Business Program and pay a reduced commission of 15%. 4  The apps mentioned throughout this report may not be available in all App Stores due to regional restrictions or other factors, including the [...] 1  In 2024, transactions facilitated by certain in-app links may have been subject to a reduced commission, depending on the jurisdiction. [...] $131 2019 $514 $65 $4 $38 $18 $34 $57 $236 $63  Totals may not sum due to rounding. 2019 estimates are based on retroactively updated numbers from third-party data.

Summary: We explore the landmark U.S. court ruling against Apple’s App Store practices, which may dismantle its 30% commission model and unlock $10–20B in annual revenue for third-party payment providers. The decision follows a legal battle with Epic Games and compels Apple to allow developers to direct users to external payment options without punitive design or fees. This undercuts Apple’s Services segment — its primary growth engine — and weakens its financial engineering capacity via [...] The iOS app store is loved by users for its infinite variety, and hated by serious developers for its 30% tax. No other payments provider can claim to charge a third of revenue on all transactions, all the while barring any other payments provider from delivering a competing service at 3% + interchange, or in the case of blockchains, nearly free. Only vertical integration across hardware and software will give you this pricing power. Imagine Visa owning not just the payment rails, but literally [...] Another company, Patreon, is working on an update to put in a payment method that avoids the 30% fee and increases payouts to creators. We expect any and all subscription services to go this route as soon as they can. Not only this, but there is now a Bill in the House of Representatives called the “App Store Freedom Act” backed by the Republican Kat Cammack. Now if you know anything about the United States, the word Freedom is like an automatic victory.

For small developers the App Store was a godsend. Building a Sales and Marketing organization is often said to be the surest way to bankrupt a fledgling company, The App Store allowed software creators to focus on what they did and liked best. The 30% commission took care of the rest. (That number was later revised down to 15% in specific cases.) Caricaturally, you could become a millionaire working in your pajamas in your parents’ basement.

Our team at Rapptr has been preparing for this change and is ready to support your implementation: [...] Published Time: 2025-04-30T23:15:00Z Apple's 30% Commission Policy Change: What It Means for Your App =============== Target U.S. iOS traffic only initially using geolocation filters Let data (conversion rates, revenue, churn) decide which approach works best before global rollout [...] The mobile app ecosystem is entering a new era of payment flexibility, and with the right approach, your business can be at the forefront of this opportunity while minimizing risk. Stay Updated ------------ Get notified about the latest posts from Rapptr First Name Last Name Email Submit Let's talk ---------- From high-growth startups to enterprise brands, we help companies of all sizes launch digital products that drive user engagement. We'd love to discuss how we can help you.