Apple May Allow NFT Gaming Marketplaces On App Store

By Josh Bobrowsky

The Short Summary

• Apple is making changes to their app store to comply with new rules for the European Union (EU)

• These rules will allow marketplaces created by 3rd parties to exist on the app store

• This may allow these 3rd party exchanges to avoid Apple’s 30% tax

• The change requires Apple to allow large companies over $80 billion in valuation and with greater than 45 million users to have their own marketplaces within the EU

• This benefits Twitter, Bumble, Spotify and Web 3/NFT gaming companies looking to integrate with the app store

• Epic Games/Fortnite had been in litigation over app store fees previously

• The speculation is that Apple may allow these changes in more countries and with smaller companies

• This could make Apple a more open ecosystem

The EU and Apple

Apple is preparing big changes in order to comply with EU requirements that will go into effect in 2024.

Europe is Apple’s second largest market.

App store revenue by location

Apple's new policy changes, designed initially to take effect in Europe, could lay the groundwork for similar laws in other regions.

The Digital Markets Act, the main new European law, becomes effective in the coming months, but companies do not have to comply with all of the rules until 2024.

Mark Gurman @markgurman

If similar laws are passed in additional countries, Apple’s project could lay the groundwork for other regions. But the company’s changes are designed initially to just go into effect in Europe.

This may allow companies with marketplaces to avoid Apple’s 30% commission

The announcement led to a boost in prices of companies that have their primary business model being in-app downloads.

Match Group (Dating App): +10%

Bumble (Dating App): +8%

Spotify +9%

Why this is important for NFT gaming

This is a key breakthrough for NFT companies that are looking to operate on the app store without paying a 30% fee.

The potential to set up 3rd party marketplaces increases the universe of viable NFT based companies that can profitably operate on the app store. It also increases the chances that buyers of NFTs will break even or be profitable.

The two big mobile game NFT companies right now that I see benefiting from this are Homa Games and Limit Break (this is not financial advice).

Conclusion

Much is still rumor and speculation as to how this will play out, but my gut feeling is that Apple is opening their ecosystem to be more friendly to new technologies including NFTs and Web 3 companies.

Cheers

Josh Bobrowsky