Snapchat says it's happy to pay Apple 30%, wouldn't exist without iPhone

Snapchat is happy to pay Apple's 30% commission

Snapchat CEO Evan Spiegel says the company is happy to pay Apple its 30% commission thanks to advancements in technology and software.

Apple has been on trial against Epic Games over how it does business with the App Store and its control of the market. One recurring problem Epic has with Apple is the commission fee it charges on every sale or in-app purchase made on the platform.

During an interview with CNBC, Snapchat CEO Evan Spiegel discussed the popular app's relationship with Apple. When asked about the 30% commission, he said Snapchat wouldn't exist without the iPhone.

"In that sense, I'm not sure we have a choice about paying the 30% fee." Spiegel said. "And of course, we're happy to do it in exchange for all of the amazing technology that they provide to us in terms of the software but also in terms of their hardware advancements."

Apple CEO Tim Cook says that Apple uses its in-app payment system to collect the 30% fee. Epic argues that Apple should allow alternate payment methods, but Cook says this would require Apple to collect fees another way.

Spiegel says Apple has been a great partner for Snapchat, and even the privacy changes with iOS 14.5 and App Tracking Transparency were welcome. Snapchat is moving to Apple's new ad tracking network that doesn't violate user privacy, and the transition has gone smoothly according to Spiegel.

The Epic Games versus Apple trial could affect the way Apple does its business depending on the outcome. If the judge sides with Epic, Apple could be compelled to allow alternate payment options or make other changes. Apple has already tried to assuage regulators with its small business program, but it may not be enough.

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