Apple proposes 15% fee on purchases made outside App Store
▼ Summary
– Apple proposed new App Store commission rates for external link purchases: 15% for standard apps, with reduced rates for special programs.
– Small business developers would pay 5%, while Video, News, and Mini Apps Partner Program participants would pay 10%, with subscription renewals also at 10%.
– Apple filed this proposal in the U.S. District Court of Northern California after failing to delay, amid its legal battle with Epic Games over App Store policies.
– The Supreme Court rejected Apple’s bid to pause lower court proceedings, forcing the company to submit its commission structure.
– Apple justified the fees as recouping investments in App Store tools and compared its rates to Google Play’s, which charges 20% standard, 15% special program, and 10% subscription renewal.
After a failed attempt to postpone the process, Apple formally submitted its proposed commission structure on Thursday for transactions completed through external links within iOS apps. The filing, entered in the U.S. District Court of Northern California, outlines a 15% commission rate for standard apps, alongside reduced rates for developers participating in specific Apple initiatives.
Under the newly proposed framework, developers enrolled in the Small Business Program would see a 5% commission on payments, while members of the Video Partner Program, News Partner Program, and Mini Apps Partner Program would be subject to a 10% rate. The filing also indicates that subscription renewals would drop to 10% as well.
This development stems from the long-running antitrust dispute between Apple and Epic Games over the competitive practices tied to the App Store’s commission model. Apple had previously sought to delay this response, arguing that the lower court’s proceedings should be put on hold until the Supreme Court weighed in on a related issue. That issue concerned whether Apple was in contempt of a court order after introducing a separate 27% fee on external link purchases and implementing restrictions on how developers could display those links to users.
However, the Supreme Court rejected Apple’s request to pause the case on Thursday, compelling the company to disclose its intended fee schedule.
Apple maintains that charging fees on user purchases made through its devices is justified as a way to recover its investment in the tools, technologies, and services underpinning the App Store and its broader software ecosystem. To contextualize its approach, the company pointed to comparable rates on Google Play, which levies a 20% link-out fee for standard apps, 15% for apps in specialized programs, and 10% for subscription renewals, noting that Epic Games had previously agreed to those terms.
(Source: TechCrunch)
