Apple to Allow In-App NFT Sales, Each Subject to a 30% Commission Fee

This has stirred up debates on NFT Twitter, with many wondering if Apple's actions will cripple the nascent NFT industry.

Sep 26, 2022
by Akira Ming
Apple to Allow In-App NFT Sales, Each Subject to a 30% Commission Fee
News

Apple finally accepts NFTs, but with a whopping 30% cut

Apple, one of the leading tech companies in the world, has allowed apps to sell NFTs on App Store. However, all NFTs must be sold through in-app purchases, each subject to a 30% commission fee. 

This has stirred up tons of debates in the NFT space, with many focusing on how Apple's hefty cut will impact the future of this emerging tech. After all, a typical NFT marketplace, such as OpenSea and Magic Eden, only charges 2-3% in general. 

On top of that, all App Store purchases must be made in USD since Apple does not accept cryptocurrencies. This makes it really hard to set a translated dollar amount in Web3 apps on iOS. 

According to The Information, Magic Eden removed the buy/sell function from its iOS app after learning about the policy. Even though Apple tried to offer a lower fee of 15%, the NFT platform refused to enable any trading functionalities on its app. 

On Friday, Epic Games CEO Tim Sweeney took to Twitter to criticize Apple's move: "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."

Many Web3 startups, in particular, are saying that the exorbitant fee makes it nearly impossible to turn a profit. According to FOSS Patents, the actual costs may sometimes exceed 30%, as certain geographic regions are subject to fees as high as 35%. Not to mention devs are forced to pay for search ads too. 

Though Apple's move has been mostly met with criticisms, some took a more positive view of the situation. For instance, Limit Break CEO Gabriel Leydon said: "Apple has decided to let developers sell NFTs inside of games/apps. 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!" 

Obviously, the easiest way to dodge the 30% fee is by offering the NFTs for free. But this may not be possible, especially for Web3 startups. 

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