Apple Hires Economists to Prove App Store is not Anticompetitive

Apple hired economists from Analysis Group, who said in a study that the company’s costs are similar to those of its competitors.

Analysis group study

the study [PDF] The goal was to compare Apple’s commission rates with other app stores / digital marketplaces and assess the App Store’s commission and its business model. He found that the commission rates were similar to the App Store’s 30% fee, although he did not examine whether the fee is responsible for stifling innovation or whether it is fair, like the some developers think.

As shown in Table 1, all of these app stores charge the same standard commission rate as Apple (30%). Each has its own exceptions, especially when it comes to subscriptions. The 15% commission rates for subscriptions after 12 months are at the lower end of the commission rates. For example, like Apple’s App Store, Google Play’s commission rate for subscriptions is 15% after 12 months and Amazon’s commission is 20% for video streaming subscriptions. Although the Galaxy Store charges a standard commission rate of 30%, it explicitly states that this rate may be negotiable.

This research is Apple’s latest effort to address concerns that it is engaging in anti-competitive behavior. It faces close scrutiny from European and American regulators, and Tim Cook will attend a hearing hosted by the House Judiciary Committee on July 27.

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