Business

Snap CEO Evan Spiegel: We're Happy to Pay Apple 30% — Without Apple We Wouldn't Exist

  • Snap CEO Evan Spiegel on Friday said the social media company is happy to pay Apple's 30% commission rate on in-app transactions.
  • "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," Spiegel said.
  • Spiegel's comments come in stark contrast to those of business mogul Barry Diller, who ripped into Apple on Friday for its fees, saying his companies are "overcharged in a disgusting manner" by Apple.

Snap CEO Evan Spiegel on Friday said the social media company is happy to pay Apple's 30% commission rate on in-app transactions.

"We really feel like Snapchat wouldn't exist without the iPhone and without the amazing platform that Apple has created," Spiegel said on TechCheck. "In that sense, I'm not sure we have a choice about paying the 30% fee, 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."

Spiegel's comments come in stark contrast to those of business mogul Barry Diller, who ripped into Apple on Friday for the cut it takes of in-app transactions, saying his companies are "overcharged in a disgusting manner" by Apple.

"The idea that they actually justify it by saying, 'We spend all this money protecting our little App Store,'" Diller said. "I mean, it's criminal. Well, it will be criminal."

Diller's comments came on the same day that Apple CEO Tim Cook is testifying in an antirust case focused on the App Store brought by Epic Games, which makes the widely popular video game Fortnite.

Spiegel, however, said Apple has been a great partner for Snap. Spiegel also praised Apple's decision to make changes in the company's latest version of iOS to provide users with more privacy protections.

"We're really aligned with them on the changes they're making to help protect privacy," Spiegel said. "And so far, the early investments we made starting almost 10 years ago to protect user privacy on our platform are really paying off."

As for how those privacy changes are impacting Snap's advertising business, Spiegel said the company has been working to help its advertising clients migrate onto Apple's SKAdNetwork, which is used by the iPhone maker to help advertisers measure the efficacy of their ads.

"So far, that transition has gone smoothly for our business," Spiegel said.

His comments come a day after Snap acquired British company WaveOptics for $500 million and after the company's annual Snap Partner Summit. There, Snap announced a new version of its Spectacles augmented-reality glasses, new e-commerce features and a new tipping feature for creators to make money.

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