The 2.5% app tax has not fared well with the NFT community, where a regular NFT marketplace charges around 2.5% commission. Many Web3 and NFT supporters have vented their anger, including Epic Games CEO Tim Sweeney and Magic Eden founder Sidney Zhang.
Web3 technology provider Apple has vested interest in keeping Web2 technology down, so it is going to allow NFTs sales in apps through which users can purchase NFTs. Each NFT sale will include a 30% commission fee, meaning Apple users can now buy NFTs through apps available on their App store.
The Google Android app store charges the same 30% commission rate as the Apple app store. On Apple, in-app purchases are charged at the stipulated 30% rate.
NFT marketplaces can’t sell through apps listed on the Apple app store and Google Play because of the high commission.
The 2.5% app tax has not gone down well with the NFT community, where a regular NFT marketplace charges around 2.5% commission. Many within the Web3 and NFT community have vented their anger, with Epic Games CEO Tim Sweeney and Magic Eden founder Sidney Zhang criticizing the Apple announcement.
Tim Sweeney is the CEO of Epic Games.
Tim Sweeney, CEO of Epic Games, was not happy with Apple’s new fees. When he tweeted that Apple’s commission is “crushing another nascent technology that could rival its grotesquely overpriced in-app payment,” he didn’t hold back.
In August 2022, Fortnite, Epic Games’ flagship game, was removed from the Apple app store after the company tried to bypass Apple fees when selling in-game items.
Epic Games filed a lawsuit against Apple for using anti-competitive restraints and monopolistic practices in the market.
Start-ups are hindered by the exisiting commission fees.
Many believe that the commission is a block set up to hinder Web3 game developers and NFT projects, many of which are start-ups with a modest budget. Others who are already listed on the app store will most likely reassess their situation.
According to Magic Eden NFT marketplace cofounder and CTO Sidney Zhang, most NFT marketplaces don’t even consider selling their products through app stores because of the high commissions involved.
Look at the big picture.
Some say we should look beyond the 30% app purchase fee aside from the community.
CEO at Limit Break, Gabriel Leydon, encouraged people to look at the big picture when commenting on a tweet that said, “With this, ETH wallets may now be installed in every game onboarding 1B+ players.”
There are always varying viewpoints on any topic.
Apple’s ‘app tax’ on non-face-to-face transactions is seen as proof of its true colours. This is to be expected of the tech giant, as we’re seeing a new technology that has the potential to compete with the big Web2 firms. They’re not going to take this lying down.
In contrast, some see this as par for the course for Apple. They say that it charges a 30% commission on all transactions, and it is not singling out NFTs. They contend that the potential for NFT adoption must be weighed when analyzing the announcement.