Ibukun is a crypto/finance writer interested in passing relevant information, using non-complex words to reach all kinds of audience. Apart from writing, she likes to see movies, cook, and explore restaurants in the city of Lagos, where she resides.
Solana-based NFT platform Magic Eden decided to opt out of the App Store due to the inflated commission Apple demands from NFT sales.
Apple (NASDAQ: AAPL) has stirred reactions from Web3 industry leaders as the tech giant decides to charge its standard 30% commission on in-app non-fungible token (NFT) sales. The company allowed the buying and selling of digital collectibles on App Store apps. However, the process has been designed in a way that is favorable to many. Apple has over one billion iPhone users that can access the App Store for NFT sales. On the other hand, other NFT marketplaces record about a million or fewer. OpenSea had around one million monthly users even during the peak of the NFT hype earlier this year.
Apple Charges Hefty Commission on NFT Sales
With the increasing adoption of NFTs, fans constantly seek marketplaces to complete their transactions. Some of the popular ones are OpenSea, Rarible, NBA Top Shot, and more.
While other NFT marketplaces charge lesser percentages as commission, OpenSea maintains its standard rate. For instance, OpenSea requests a 2.5% commission on NFT sales. Apple’s commission decision has raised comments such as “grotesquely overpriced.”
The CEO of Epic Games, Tim Sweeny, took to Twitter to address the high Apple NFT commission. Sweeny believes the iPhone maker is doing a lot of harm with the move.
“Now Apple is killing all NFT app businesses it can’t tax, crushing another nascent technology that could rival its grotesquely overpriced in-app payment service. Apple must be stopped.”
This is not the first time Sweeny and Epic Games will have something against Apple. Before the NFT commission issue, the video game company launched a lawsuit against Apple in 2020. However, it lost the case, which claimed Apple violated antitrust laws with its 30% commission from App Store purchases. Adamant on the legal charge, Epic appealed the case. The US antitrust officials have asked to be involved in the appeal arguments in October.
Apple’s In-App NFT Sales Could Trigger Adoption
The Information revealed that Solana-based NFT platform Magic Eden decided to opt out of the App Store due to the inflated commission Apple demands from NFT sales. There are two sides to a coin, they say. While some attack Apple for the hefty commission on NFT sales, others are seeing the brighter side of the whole development. Some Twitter users talked about how mobile games and more will benefit from selling NFTs in-app on the App Store. In addition, another group is focused on the impact of the Apple in-app NFT sale regardless of the commission.
At press time, Apple stock is up 0.08% to $150.89 in after-hours session after closing up 0.23% to $150.77. The company has shed more than 15% since January and lost 6.57% over the past month. In the last five days, Apple stock has plunged 2.40%. Despite the declines, the iPhone maker’s shares pooped 3.71% in the last 12 months and 6.43% in the last three months.