Apple Proposes New Commission Structure Amid Ongoing Legal Battle
Apple submitted its proposed commission structure for in-app purchases through external links on iOS devices in a filing to the U.S. District Court of Northern California on Thursday. This development comes as part of an ongoing dispute with Epic Games over App Store policies.
Under the new proposal, Apple intends to charge a standard commission of 15% on purchases made through these external links. However, there will be reduced rates for certain developers enrolled in specialized Apple programs. Small business developers would have their commissions set at 5%, while those involved in the Video Partner Program, News Partner Program, and Mini Apps Partner Program would pay 10%. Additionally, subscription renewals would also see a decrease to 10%, according to the filing.
The legal confrontation between Apple and Epic Games has spanned several years, centering on allegations of anti-competitive practices regarding App Store commissions. Apple had previously sought to delay its response to the court regarding this commission structure, arguing that proceedings should be paused pending a Supreme Court decision on another issue in the case. This issue concerns whether Apple was in contempt of court for imposing a new 27% commission on purchases made via external links and for establishing restrictions on how developers could present these links.
On Thursday, the Supreme Court denied Apple’s request for a delay, compelling the company to disclose its proposed commission framework. Apple maintains that charging fees on in-app purchases is necessary to recover its investments in the necessary tools, technology, and services for its App Store and software development.
In its filing, Apple also drew comparisons between its proposed fees and those charged by Google Play, which imposes a 20% rate for standard apps, 15% for those in special programs, and 10% for subscription renewals. Notably, Epic Games had previously agreed to these rates with Google.
