Apple Proposes 15% Fee on External Purchases Following Supreme Court Ruling
Apple has submitted a formal proposal outlining the commission fees it plans to apply to purchases completed through external links within iOS applications. The proposal was submitted in the U.S. District Court of Northern California after the company was unsuccessful in delaying the proceedings.
What Happened
Apple presented its new commission framework after the Supreme Court rejected its attempt to pause action in the ongoing lower court case. The iPhone maker had sought to halt proceedings until the Supreme Court reached a decision on a separate matter: whether Apple violated a court order by previously instituting a 27% fee on external link purchases and setting rules on how developers display those links. With the request denied, Apple submitted its fee schedule to the court.
Key Highlights
- Standard Rate: A 15% commission is proposed for standard applications using external links.
- Small Businesses: Developers qualifying for the small business program would pay a 5% commission.
- Partner Programs: Participants in the News Partner Program, Video Partner Program, and Mini Apps Partner Program would be charged a 10% rate.
- Subscription Renewals: Renewal charges for subscriptions would be set at 10%.
- Google Play Comparison: Apple noted that Google Play applies a 20% rate for standard apps, 15% for special programs, and 10% for subscription renewals, rates to which Epic Games had agreed.
Why This Matters
This filing comes amid an ongoing, multi-year legal conflict between Apple and Epic Games regarding App Store commission rules and allegations of anti-competitive practices. In defending its proposed fees, Apple stated that charging commissions on transactions initiated on iOS devices enables it to recover expenditures made in developing the technology, services, and tools necessary to operate the App Store and iOS ecosystem.
What to Watch Next
The proposal remains subject to review within the ongoing proceedings in the U.S. District Court of Northern California as the dispute between Apple and Epic Games continues.
Frequently Asked Questions
What are Apple’s proposed rates for external purchases?
Under the submitted plan, standard apps would pay 15%, small businesses would pay 5%, subscription renewals would incur a 10% fee, and apps enrolled in specific partner programs (Video, News, and Mini Apps) would be charged 10%.
Why did Apple submit this proposal now?
Apple submitted the fee structure after the U.S. Supreme Court denied its request to pause the lower court proceedings.
What reasoning did Apple provide for charging external link fees?
Apple stated the fees are intended to recoup its investments in the technology, tools, and services required to maintain its software and App Store.
Source: Based on court filing details reported via TechCrunch and Bloomberg.