- Apple charges 15-30% extra for in-app purchases and subscription fees like YouTube Premium
- This has become known as the 'Apple tax'
- Third-party developers have been protesting this, mainly Fortnite founder Epic Games
Apple’s App Store is a one-stop shop for all your needs. It’s made subscribing to third-party services a lot easier, and you can manage your memberships all from one place right there on your iPhone. That said, subscribing to platforms through Apple comes with a small but pricey catch.
If you’ve subscribed to the best streaming services such as YouTube Premium through the App Store, you might not know that this could cost you a lot more than if you were to sign up through YouTube itself — and it’s all down to App Store fees.
For example, if you were to sign up to YouTube Premium’s standard tier via its website, it would cost $15.99/ £12.99/ AU$22.99 a month, but if you signed up through the App Store, that monthly price becomes slightly more expensive ($20.99/ £16.99/ AU$23.99).
So, if you’ve started to wonder why your YouTube Premium subscription fee has skyrocketed in comparison to your Netflix and Disney+ memberships, this could be the reason. But why is the margin a lot higher for purchasing directly through Apple’s App Store?
Two words; Apple tax
Apple doesn’t just make bank from selling its extensive range of smartphones, laptops, and other devices; its App Store has created another source of revenue for the tech giant, which is now often referred to as the ‘Apple tax’.
Since Apple charges developers to implement alternative payment systems that aren't Apple Pay, these developers will bump up monthly subscription costs by roughly 15-30%, charging you more per month for simply subscribing to platforms via the App Store in order to avoid paying this fee. It doesn’t just apply to monthly subscriptions; Apple applies this tax to most of its digital goods and in-app purchases.
Now, Apple has been doing this pretty much since the App Store launched on iPhone some 18 years ago, resulting in a protest to this tax — mainly by Fornite-founding company Epic Games.
Back in 2020, Epic Games started its protest against Apple’s App Store fees by implementing its own direct payment system in iOS. As a result, Apple booted Epic’s developer accounts and removed Fortnite, but it didn’t end there.
Epic Games retaliated with a claim of its own, arguing Apple decided to remove Epic's developer accounts because it saw Epic Games as a threat to its ecosystem. Fortnite was then listed back on the App Store following a five-year absence, but the dispute is still very much unresolved. As it stands, the US Supreme Court has decided to hear Apple’s appeal of contempt in the ongoing lawsuit with Epic Games. This will begin in the Supreme Court’s next term, which starts in October.
For most of you who are literate with the ways of Apple, its App Store fees probably won’t come as a big shock to you, but for the average user who relies on their Apple device to make digital purchasing more convenient, they might not be as aware of the catch and are still being blindsided by the Apple Tax.
