Apple’s infamous 30% cut on App Store transactions may soon be under the knife.
Following a major legal ruling and mounting pressure from developers and regulators, Apple is reportedly exploring ways to lower its App Store commission rates, not just to comply with the law, but to stay competitive in a marketplace that’s quickly slipping from its control.
According to Bloomberg’s Mark Gurman, Apple is weighing its options as major developers begin to jump ship and implement their own payment systems, bypassing Apple’s built-in checkout and its hefty fees.
This time, the threat isn’t theoretical. It’s happening right now.
Court Ruling Strikes at the Heart of Apple’s Fee Model
Late last month, a U.S. judge ruled that Apple’s 27% commission on external payments was illegal, a major blow to Apple’s attempt to keep control of the App Store’s economics, even when developers used third-party payment methods.
Previously, Apple allowed alternative payment processors with two major strings attached:
- Developers had to include a scary-looking warning screen discouraging external payments
- Apple would still take 27% of any revenue earned, leaving little incentive to switch, since most third-party processors charge only 2–3%
Now that restriction is gone, and developers are wasting no time. Many large apps have already started rolling out their own payment flows, completely bypassing Apple’s system.
Apple is appealing the decision, but that legal process could take years. And in the meantime, developers have more freedom than ever.
💰 Apple’s $20 Billion Dilemma
The App Store generates around $20 billion a year in revenue for Apple, mostly through that 15–30% commission structure. And that money isn’t just profit. It fuels Apple’s services business and helps offset hardware pricing pressure.
So the company finds itself in a bind: either stick to the old model and watch developers leave, or adjust the commission structure to retain control over the in-app economy.
According to Gurman, Apple may be leaning toward the latter.
“I expect Apple will need to reduce its commission rate before too long,” he wrote in the Power On newsletter.
What Apple Could Do Next
Apple won’t abandon its payment system entirely, but it may need to make it more appealing to keep developers around. Some likely options:
- Lower the base commission rate (especially in the U.S.)
- Introduce new tiers for small, medium, and enterprise developers
- Double down on privacy and convenience as selling points
- Incentivize use of Apple’s system with perks like instant settlement or deeper API access
And let’s not forget the user experience. Apple’s payment system is frictionless, just double-click the side button and it’s done. No typing in credit card numbers. No pop-ups. For many small and mid-sized developers, that ease of use might be worth a lower commission, if Apple gets the price right.
This Is Bigger Than Fees
The real shift here isn’t just about numbers. It’s about control.
For over a decade, Apple has dictated the terms of the mobile software economy. But between EU regulations, court rulings, and developer pushback, the company is now facing a new reality: developers have options.
And some are taking them.
Apple lowering its cut would be a tactical retreat, one that helps preserve the ecosystem, even if it dents the margins.
Closing
The App Store’s golden tax may be coming to an end. And Apple, for all its dominance, may finally have to play defense.
- Snapchat’s Solar System Explained: What Do the Friend Planets Mean? - May 30, 2025
- Mouse Not Showing up on Laptop? Here’s How to Fix It Fast - May 26, 2025
- Apple May Slash App Store Commissions to Stay in the Game - May 19, 2025