Apple has a strong name in the Digi-tech industrial domain and almost everyone tries to use its services. Recently, different app makers like game company Epic and the popular music service Spotify are challenging Apple’s rights to cut their sales at a large and peak rate. This has been countered and noticed by Regulators.
According to Apple, if this happens then they would be going to bear a 30 percent cut of their sales and some complaints also.
In a recent era, this Apple store is one of the biggest centers of commerce that is serving a trillion dollars’ sales all alone in the last year only. Ultimately, the downfall of this app store will highly impact Apple’s sales. It has been the primary driver of growth in recent years for a company that has nearly $275 billion in annual sales.
Phillip Shoemaker, a former senior App Store executive alleged that “I think we’re realizing that 30 percent is way too much. Credit card companies charge roughly 3 percent to process payments. “It should be closer to that.”
A huge rising peak has been noticed among the app developers, consumers, and regulatory authorities. Google and App make a huge sale altogether of about $3 trillion which virtually strengthens the backbone of many smartphones. This sort of dominance is keeping them at the top to attain high commissions.
Andy Yen, the chief executive of ProtonMail, an email service claims that “There are very few companies out there that have a 30 percent profit margin. The only way we can support this fee is bypassing that cost on to customers.”
Similarly, Spotify has increased the charges of its monthly subscription to $13 from $10 in 2014 in reference to Apple’s fee. Meanwhile, customers can still use Spotify’s app, but they will subscribe to Spotify’s website either. Yet Apple bars Spotify from saying that includes in its iPhone application.
Horacio Gutierrez, Spotify’s chief legal officer, told reporters in June right after Europeans authorities opened a channel of the anti-trust investigation into Apple bases on Spotify’s complaint box area and stated that “Either we lose because we have to pay them a 30 percent tax just to operate and raise our prices for consumers as a result, or we lose because it becomes much more expensive to convert users from free to premium.”
In addition, Apple has announced on Friday that it is going to collect 30 percent sales on all its new live evets service where consumers would be able to talk to live experts, talk about fitness, and may have a look upon cooking tutorials on one Facebook App. Facebook said it wanted to process the payments itself so it could pass on 100 percent of the sales to the small businesses selling the talks and classes, but Apple has declined and ignored this stance.
Even on one side, senior executives are asking for 40% subscription charges. A pinch of sales conversion is under discussion among authorities and they will announce their future final verdict soon.