Apple ‘disgustingly overcharged’ on the App Store
Business tycoon Barry diller Apple on Friday charged the fees it charges companies that have apps on the iPhone maker’s App Store.
For large businesses, Apple charges a 30% commission rate on in-app transactions; for some small developers, the company recently lowered to 15% after facing criticism.
“The idea that they justify it by saying, ‘We’re spending all this money to protect our little App Store,’” Diller said. “I mean, it’s criminal. Well, it will be criminal,” he predicted.
Diller’s comments on Friday arrived the same day as Apple CEO Tim Cook ready to testify in a rust proof case focused on the App Store brought by Epic Games, which makes the very popular Fortnite video game.
Apple has a “virtual monopoly” with AlphabetGoogle, which operates the Google Play app store, said Diller.
Diller focused on how Apple is forcing in-app transactions to go through the App Store payment system. Because Apple provides the payment system, he said the best comparison for Apple is a credit card company, which typically takes around 2% fees on transactions.
“It’s irrational, 30%. I mean, it just doesn’t make sense,” Diller said.
“Match, little Match.com, pays Apple $ 500 million a year to go through their store. Does that sound rational to you?” Diller said, referring to the dating company Diller’s IAC turned into a separate entity last year.
A look at “Little Island,” a park with many cultural offerings on a man-made island in the Hudson River, is expected to open in the coming weeks.
Christina Horsten | image alliance | Getty Images
Diller’s CNBC interview on Friday took place on the newly opened small island, located on the Hudson River, on the west side of Manhattan.
The $ 260 million, 2.4-acre park – a decade under construction and, at one point, briefly canceled – was mainly funded by Diller and his family foundation with his wife, fashion designer Diane von Furstenberg.
Diller has committed around $ 160 million to help maintain Little Island over the next 20 years. New York too contributed in public money for the project.
The design was a collaboration between MNLA, a New York landscape architecture firm and Heatherwick Studio, the London-based firm founded by Thomas Heatherwick, who was also the original ship to Hudson Yards in Manhattan. Heatherwick also designed the Olympic cauldron for the 2012 London Games.