Apple blocked the latest Coinbase Wallet update on iPhone due to a dispute over its high commission fee. Apple recently decided to charge a 30% sales commission for NFT marketplaces on iOS despite severe community backlash. As a result, Coinbbase pulled its NFT trading feature on iOS devices due to the app store lacking crypto support. “Apple’s proprietary In-App purchase system does not support crypto,” reads a tweet by Coinbase. “[S]o we couldn’t comply even if we tried.”
Coinbase says NFT wallet trading fees are like Apple taking a cut for sending emails.
“Apple has introduced new policies to protect their profits at the expense of consumer investment in NFTs,” Coinbase tweeted. In September, Apple’s 30% commission fees for NFT trading made headlines due to the extraordinarily high percentage. For reference, most non-fungible token marketplaces, such as OpenSea, charge standard commission fees of about 2.5%.
In addition to the backlash from Coinbase, MetaMask co-founder Dan Finlay supported the idea of leaving Apple behind. Ironically, Finlay is a former employee of the tech giant. Apple’s 30% fee on the Coinbase wallet effects all corners of the cryptocurrency industry. “I’m ready to dump the Apple ecosystem,” Finlay Tweeted. “The 30% tax is an abuse of monopoly. @tim_cook has donned the Big Brother screen.”
Several big tech executives, including Mark Zuckerberg and Elon Musk, condemned Apple’s iron grip on the App Store commission. Musk even claimed Apple threatened to remove Twitter from the App Store shortly after he spoke out against the fees.
Apple faces growing pressure from antitrust regulators.
The Federal Communications Commission (FCC) recently recommended the Justice Department investigate Apple’s App Store and the Google Play Store. Although, in this case, its regarding national security concerns over TikTok data collection rather than commission fees. However, the recommendation is part of the federal governments growing interest in Apple’s anticompetitive practices.
The recommendation comes as the Epic Games v. Apple lawsuit returns to the courtroom. Both parties appealed a previous ruling in what could potentially become a precedent-setting, landmark case in federal antitrust law. If the courts rule Apple is indeed a monopolist, it would open the floodgates on Apple’s control over in-app purchases. It would likely mean the end of the 30% NFT trading fee for the Coinbase wallet and other platforms.
