Critics Slam Apple As 'Enemy Number 1' For Alienating Developers With Steep 27% App Store Commission

Apple Inc.'s AAPL decision to levy a 27% fee on all sales originating from links clicked in apps has drawn sharp reactions from developers and Cathie Wood's Ark Invest analyst Andrew Kim.

What Happened: After scoring a partial victory in the antitrust lawsuit brought by Epic Games, Apple moved swiftly to levy a new commission on purchases made by clicking on links in iOS apps.

Now, if any user clicks on a link in apps to purchase on the web, Apple will levy a 27% commission if the user purchases within seven days.

Essentially, suppose you tap on a purchase link in an app and are directed to the developer's website to complete the purchase. In that case, the developer will have to pay Apple a 27% cut if the transaction is completed within seven days.

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The 27% levy is only marginally lower than Apple's 30% App Store commissions, making it less appealing for developers to host a webpage and build a payment portal.

Ark Invest analyst Kim thinks this can potentially repel app developers, further increasing discord between the Tim Cook-led company and its developer community.

"Seemingly alienating its developer community, is Apple setting up to lose in the mobile computing space as new consumer AI wearables hit the market, threatening it with creative and provocative AI-related platform shifts?" asked Kim in an Ark Invest note.

Epic Games cofounder and CEO Tim Sweeney had some sharp words of criticism for Apple. He called it "bad-faith ‘compliance'" and said it "totally undermines" the court's order.

"Epic will contest Apple’s bad-faith compliance plan in District Court."

‘Enemy #1'

While Sweeney and Epic Games have long been contesting Apple, Ruby on Rails creator David Heinemeier Hansson has also called out the company.

"The red mist of vindictiveness is blinding Apple's view of history, and making them repeat the mistakes it took Microsoft two decades to undo."

He thinks Apple is in "cut off the air supply" mode and that "Microsoft is no longer developer's enemy #1, Apple is."

Hansson himself has been facing issues with Apple's App Store policies, having had his calendar app rejected multiple times.

"Apple would be wise to study the long arc of Microsoft's history. They'll rue the day they chose this wretched path."

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