$11 billion reasons Apple’s App Store tax is worth paying

Apple  in potentially fraudulent transactions in 2025 alone.

A tax worth paying

The company said it has prevented $11.2 billion in such fraud in the last six years. That’s a lot of value for the 15% or lower commission that all but the biggest-selling developers are required to pay on their store sales.

Don’t believe the hype, as most developers are not generating the $1 million a year required before the 30% payment kicks in.

You might reflect that if there is an Apple Tax, it’s a progressive tax in which those with the broadest shoulders help support the wider developer community, which is probably why some tech billionaires don’t like it. 

But I’m not here to write about taxation; I’m here to highlight the value the App Store brings. Apple diligently works to protect customers and developers against the ever-growing threat of cybercrime at a scale few other companies could hope to match. That matters in an environment dominated by ever more sophisticated attacks, including scenarios in which a developer submits a benign app for review and then modifies it once the app is online to commit financial fraud.

More than fraud prevention

It’s not just fraud Apple protects App Store customers from. It also attempts to protect privacy. Look, we know that tech firms now exist for whom privacy is a roadblock to profit; they want to take all your information for free to sell it for money, or worse. Apple stands against this and has done so for years, which is why it is under steady attack by entities that want privacy destroyed to boost their bottom line. Nation states and nation-state-adjacent attacks don’t help in the battle for your private digital life, throwing huge resources at undermining personal protections.

Apple’s report gives you a solid glimpse at the anti-privacy environment. App Store rejected 443,000 app submissions for privacy violations; it also rejected 22,000 apps for holding undocumented anti-privacy features. 

The upshot is that while Apple’s protections aren’t 100% perfect, they’re still industry leading. Where incidents do take place, they are resolved swiftly, and the bait-and-switch approach (in which an app pretends to be benign but carries malware) remains the biggest threat. That’s why customers should always verify they trust a developer before downloading apps.

The threats coming over the hill

The thing is, all of these threats are evolving, and Apple is equipped to evolve in parallel with them. In part, that’s because it has scale, in part because it has that huge 2.2-billion-device ecosystem, in part because the company entered the app store race with deep understanding of how online transactions were evolving in the first place. It didn’t run iTunes for years only to learn nothing.

Coming up over the hill we can see  being built and submitted at a record pace. 

We will also likely see increased attacks made against developers in order to extract their Developer ID to help in the submission of such apps. And we will see increasingly sophisticated algorithmic hacks to attack security, identity, and even app ownership. Protecting against those consequential evolutions will be neither easy nor cheap. Doing so will require near state-level protection, a degree of security no small entity can meet. We have no idea if smaller app stores,  .