Home Crypto Apple’s App Store Wants to Capture 30% Commission on NFT Sales

Apple’s App Store Wants to Capture 30% Commission on NFT Sales

Apple's App Store Wants to Capture 30% Commission on NFT Sales

Developers of NFT applications have objected to a decision by Apple. For example, Apple wants to receive a 30% commission on all NFT sales via apps sold on its marketplace. This effectively places NFT purchases in the same basket as regular in-app purchases.

High commission criticized

Although it may not be surprising that Apple wants to charge a commission for these purchases, the decision has been criticized for the high percentage. The percentage is therefore not at all close to the standard in the NFT commission world, which is approximately 2.5%.

The decision was labeled “offensive but consistent” by several individuals. Asking such a percentage of 30% could be bad for the still relatively new technology, according to Epic Games CEO Tim Sweeney. It would “kill” all NFT App companies.”

NFT commission not only has disadvantages

Apple’s decision has already resulted in several NFT related companies having their app removed from the App Store. Some other NFT marketplaces are said to have limited functionality due to the App Store decision. This is also because of the high commissions. There is also the added challenge of being forced to transact in US dollars rather than cryptocurrency, which could be risky given the higher volatility of the cryptocurrency markets.

However, it is also seen by some as a positive sign that Apple is now planning to accept NFTs on a large scale. For example, by making it easier to link a crypto wallet to an Apple account, it also becomes easier to make the step to other crypto projects, including games. While the commission may be on the high side, the NFT acceptance does bring with it many new potential customers.

High Commission not criticized for the first time

Apple’s high commission is certainly not being criticized for the first time. For example, Epic Games has already initiated legal proceedings. Their well-known game Fortnite was removed from the App Store in August of 2020, because the publisher tried to sell in-game purchases that circumvent Apple’s fees.

However, there are currently several NFT marketplaces available in the App Store, including Magic Eden, OpenSea and Rarible. Various crypto trading apps such as Binance, Coinbase Wallet and Crypto.com are also still available.

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