September 29, 2022
By Sharan Kaur Phillora
Those who are in the business of selling NFTs are about to see a risky venture become a little less lucrative. Apple appears to have stepped into this matter to claim its piece of the NFT pie. It looks like rules are being imposed that allow Apple to take a 30 percent cut of any NFTs sold through iOS apps, and the tech company is going out of its way to keep potential sellers from dodging these fees.
Here’s what we know:
As noted by Apple Insider, a typical NFT marketplace will take a 2-3 percent commission. However, according to a new report from The Information, Apple is looking for a whopping 30 percent commission from any NFT deals conducted through iOS apps.
If reports are to be believed, Apple is not ready to bend its rules to anyone. It insists on paying a 30 percent commission that applies to all in-app purchases and includes all trades.
This was why NFT startup Magic Eden decided to stop offering trading on its app. Although Apple slackened and slashed commissions to 15 percent for firms with annual earnings of less than $1 million, the startup didn’t budge.
The result is that NFT traders are looking to move away from Apple’s ecosystem. Startups, in particular, are noting that the exorbitant fees make it almost impossible to turn a profit. On top of that, App Store purchases must be made in U.S. dollars since Apple does not deal in cryptocurrency. Because of the inherently volatile nature of cryptocurrency and its value, setting a translated dollar amount is exceedingly tricky.
Apple has responded to The Information’s report prompts to check the App Store rules. That suggests that the fees are high enough to potentially deter NFT sellers from Apple’s platform.
It’s certainly not the first time we’ve heard about Apple’s high commission fees. That’s part of what led to the ongoing war between Apple and Epic Games, which continues to this day. Meanwhile, some NFT dealers are suggesting a bias against them from Apple, citing delays in approvals for NFT and Crypto apps compared to the relatively short turnaround time for approval on the Google Play store.
About the author
Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.