Apple reportedly admits it may earn no commission from third-party app stores

Apple’s admission in regulatory filings marks a significant retreat from its earlier stance. The company had aggressively defended its right to collect commissions on sales made outside its App Store, even when developers used third-party payment systems. This position led to legal friction, including a rebuke from the judge overseeing the Epic Games case, who viewed Apple’s 27% commission on external sales as an attempt to circumvent the intent of antitrust rulings. The new filing suggests Apple now recognizes that regulators may not permit any commission on alternative app stores or payment systems, a change that could reshape its services business model.

The potential loss of commission revenue directly impacts Apple’s financials. Services, which include App Store commissions, have been a high-margin growth area for the company, contributing significantly to its valuation. Analysts warn that if Apple is barred from collecting any commission on third-party sales, its services revenue could decline for the first time. For engineers and developers, this could mean lower costs for distributing apps outside the App Store, but it also raises questions about Apple’s long-term investment in tools like Xcode and other developer resources, which are currently subsidized by commission revenue.

The shift reflects broader antitrust pressures on Apple’s App Store monopoly. The EU’s Digital Markets Act and US court rulings have forced Apple to allow third-party app stores and external payment systems, undermining its ability to dictate terms to developers. While Apple has proposed lower commission rates (5 to 15%) as a compromise, regulators may reject these as insufficient. If Apple is ultimately barred from collecting any commission, it could accelerate the fragmentation of app distribution on iOS, with developers gaining more flexibility but also facing new challenges in discoverability and platform consistency.

For engineers building or maintaining iOS apps, the change introduces both opportunities and risks. Lower distribution costs could make alternative app stores more viable, but the loss of Apple’s centralized ecosystem may complicate updates, security, and user acquisition. Developers may also need to adapt to new payment systems and compliance requirements, particularly in regions with strict antitrust enforcement. The long-term impact on Apple’s developer tools remains unclear, if commission revenue declines, the company may reduce investment in these resources or shift costs elsewhere, such as through higher fees for other services.