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Apple Proposes 15% Fee on Purchases Made Outside App Store

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Apple Proposes 15% Fee on Purchases Made Outside App Store

Apple is proposing a new commission structure for purchases made through external links in iPhone and iPad apps, with the company seeking a standard fee of 15% from developers.

The proposal was submitted Thursday in a filing with the U.S. District Court for the Northern District of California. It comes after Apple failed to convince the U.S. Supreme Court to pause proceedings in its ongoing legal dispute with Epic Games.

Under the proposed system, developers using external links to direct users to purchases outside the App Store would generally pay Apple a 15% commission. However, developers participating in certain Apple programs could qualify for lower rates.

Small business developers would pay a 5% commission, according to the filing. Developers enrolled in Apple’s Video Partner Program, News Partner Program, or Mini Apps Partner Program would face a 10% commission. Apple also proposed reducing the commission on subscription renewals to 10%.

The move is the latest development in Apple’s long-running legal battle with Epic Games, which has challenged Apple’s App Store policies and commission practices as anti-competitive.

Apple had previously tried to delay submitting its proposed commission structure.

The company argued that proceedings in the lower court should be put on hold until the Supreme Court addressed another issue connected to the case.

That dispute centers on whether Apple violated a court order when it introduced a 27% commission on purchases made through external links. Apple also introduced rules limiting how developers could display and use those links to direct customers outside the App Store.

The Supreme Court rejected Apple’s request to pause the lower-court proceedings on Thursday. As a result, Apple was required to move forward and disclose the commission structure it wants to implement.

Apple continues to defend its right to collect fees from purchases made by users of its devices, including transactions completed through external links. The company says these fees help it recover the money it invests in the tools, technology, services, and infrastructure that support its App Store and software ecosystem.

Apple also pointed to Google Play as a comparison in its filing. According to Apple, Google charges a 20% link-out fee for standard apps, while developers participating in special programs pay 15%. Subscription renewals on Google Play are charged at 10%.

Apple noted that Epic Games had agreed to those Google Play rates, using the comparison to support its position that the proposed Apple fees are reasonable.

The proposed structure still needs to be considered as the legal proceedings continue. For developers, however, the changes could have a significant impact on how much revenue they keep when customers make purchases outside Apple’s App Store payment system.

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