Apple execs head to London to fight for the App Store – Computerworld

Is it all about legality — or profitability?

In the end, and as I’ve pointed out before, even some of the company’s critics levy similar fees on sales through their platforms, which means it isn’t a matter of fee/no fee, but a question of how much fee is legitimate for Apple’s storefront, or any storefront, to charge. Even big brick-and-mortar grocery stores charge for shelf placement, after all. 

“The commissions charged by the App Store are very much in the mainstream of those charged by all other digital marketplaces,” Apple said when the case began. “In fact, 85% of apps on the App Store are free and developers pay Apple nothing. And for the vast majority of developers who do pay Apple a commission because they are selling a digital good or service, they are eligible for a commission rate of 15%.”

What happens next?

The litigant at one point claimed Apple made $15 billion in App Store sales on costs of around $100 million, though those costs seem to ignore research and development, OS development, security, payments, and associated investments Apple makes in its ecosystem.