Apple’s 30% App Store Fees for NFT Apps

Apple's decision to impose a 30% commission on NFTs sold through it's App Store has caused controversy and passionate reactions from different industry players.

Apple’s 30% App Store Fees for NFT Apps

Apple has shocked many by stipulating a 30% commission on the sales of NFTs through its app store. Developers are shocked as they see this as putting the sale of NFTs in the same category as in-app purchases, something that is very similar to what Google Play charges on its Android app store. As NFTs are a relatively new technology, there are no standard practices around things like App Store commision, which makes Apple’s decision very consequential.

Many people have spoken out against this take rate, especially when NFT marketplaces like OpenSea charge a 2.5% commission, and with many other new NFT marketplaces charging even lower transaction fees. Tim Sweeney, Epic Games CEO, called out Apple in a tweet saying, “Now Apple is killing all NFT app businesses it can’t tax, crushing another nascent technology that could rival its grotesquely overpriced in-app payment service. Apple must be stopped.” Solana NFT marketplace, Magic Eden, reacted by withdrawing from the App Store even after Apple tried to negotiate a new 15% commission.

Not everyone has reacted negatively, some have chosen to focus on the positive such as Gabriel Leydon, CEO of Web3 gaming company Limit Break, who tweeted, “Everyone is focusing on apple wanting its 30% cut of each transaction without realizing this could put an ETH wallet in every single mobile game onboarding 1B+ players!”

While Apple’s decision is controversial, it’s going to be interesting to see whether they change their mind or how the rest of the Web3 industry reacts.