NewsThe Coming Showdown Over App Store Commissions

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Recent reports have suggested that Netflix is looking for a way to bypass iTunes and the App Store — and Apple’s 30 percent commission on paid apps, in-app purchases and subscriptions. Now financial analysts are taking note and worrying about the potential impact to Apple if pressure from the mobile development industry forces the company to change its commission structure.

Ben Schachter from Macquarie Research wrote, “We believe that the traditional . . . ommission rates for app distribution may come under pressure. Changes in the commission rates would meaningfully impact profits.” He added that changes could result in a $16 billion drop in Apple’s adjusted earnings. He also noted that game developers have previously suggested that App Store and Google Play commissions are unfair to developers.

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