Apple Proposes 5% to 15% Commissions for External App Store Payments
The tech giant suggests tiered fees for transactions bypassing its in-app system as part of a legal battle with Epic Games.
Apple has submitted a court-ordered proposal to the U.S. District Court to collect commissions on digital purchases made via external links. The move is the latest development in the company's protracted legal conflict with Epic Games over App Store payment monopolies.
Under the proposed tiered structure, Apple would collect a 15% commission from standard apps that currently pay a 30% cut for in-app purchases. Developers qualified for the Small Business Program—those earning under $1 million annually—would see a reduced commission of 5% for external link transactions. Epic Games has already rejected the proposal, arguing that these fees exceed the court's guidance on what constitutes "necessary costs."
The Legal Backdrop
The dispute traces back to a 2021 injunction by Judge Yvonne Gonzalez Rogers, which required Apple to allow developers to include external payment links. The conflict intensified after Apple was found in contempt for continuing to collect high fees despite the order. Subsequently, the Ninth Circuit Court of Appeals ruled that Apple could charge commissions, provided they were based on the "necessary costs" of maintaining the ecosystem. The court is now tasked with determining exactly what constitutes a fair commission under that definition.
Industry Implications
This ruling is poised to set a critical precedent for the App Store's economic model in the United States. At stake is whether Apple can legally maintain a revenue stream from transactions it does not actually process. The case also underscores the growing divide between the two dominant mobile ecosystems; Google has already lowered its external billing commission to 10% and permits third-party app stores on the Android platform, putting further pressure on Apple's closed-garden approach.
What Remains Unresolved
While Apple is pushing for the 5% to 15% range, the company made a notable admission in its filing. According to Epic Games, Apple admitted that under the Ninth Circuit’s specific definition of "necessary costs," it would charge 0% for purchases made via linkouts to the web. The court must now decide if Apple's proposed tiered fees align with that legal standard or if the company must abandon commissions for external web-based transactions entirely.