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Apple proposes 15% commission on purchases outside App Store

Created at 14 Aug · 3:11 PM1 source↑ Market-relevant
IN SHORT

Apple has proposed new commission rates for purchases made through external links within apps on its iOS devices. The proposal includes a 15% rate for standard apps, with further discounts for developers in special programs and for subscription renewals.

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Key Numbers

15%proposed commission for standard apps
5%commission for small business developers
10%commission for special program participants and subscription renewals
27%previous commission on external link purchases
20%Google Play's standard link-out rate

Who's Involved

Apple
proposed new commission structure for app purchases
Epic Games
long-time legal adversary over App Store policies
U.S. District Court of Northern California
court where Apple filed its proposal
Supreme Court
rejected Apple's bid to pause legal proceedings
Apple proposes 15% commission on purchases outside App Store

↳ Why This Matters

This proposal directly impacts how developers can monetize their apps and potentially influences the cost of digital goods and services for consumers on iOS devices. It is a significant development in the ongoing regulatory scrutiny of Big Tech's app store policies.

Key facts

  • Apple proposed a 15% commission on purchases made through external links in apps.
  • Developers in special programs and those with subscription renewals would receive reduced rates.
  • Small business developers would pay a 5% commission.
  • Apple's proposal comes after the Supreme Court rejected its bid to pause legal proceedings.
  • Apple justifies the fees as necessary to cover its investments in the App Store and related services.

Apple has submitted a proposal to the U.S. District Court of Northern California detailing new commission rates for purchases made through external links within apps on its iOS devices. The company is proposing a 15% commission for standard apps, with further reductions for developers enrolled in specific Apple programs and for subscription renewals. Small business developers would face a 5% commission.

This filing follows a legal battle with Epic Games over Apple's alleged anti-competitive App Store policies. Apple had attempted to delay this specific commission structure proposal until a Supreme Court ruling on a related matter concerning contempt of a court order. However, the Supreme Court rejected Apple's request to pause the lower court proceedings, compelling the company to reveal its proposed commission structure.

Apple's stated rationale for charging these fees is to recoup its investments in the technology and services required to maintain its App Store and software. The company also drew a comparison to Google Play's commission rates, which it noted are higher for standard apps and special programs.

Frequently asked questions

Apple is proposing a 15% commission for standard apps, with lower rates for developers in special programs and for subscription renewals. Small business developers would pay 5%.

Apple was compelled to submit the proposal after the Supreme Court rejected its request to pause lower court proceedings in its legal battle with Epic Games.

Apple states the fees are necessary to recoup its investments in the tools, technology, and services that support its App Store and software.

What Happens Next

01The court will review Apple's proposed commission structure.
02Further legal proceedings will continue regarding App Store policies.

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Cadence

How It Developed

Apple submitted a proposal for commissions on external purchases within apps.
The proposed commission is 15% for standard apps, with discounts for special programs and subscription renewals.
Apple had been in a legal battle with Epic Games over its App Store policies.
The Supreme Court rejected Apple's request to pause lower court proceedings.
Apple argues fees are necessary to recoup investments in its App Store and services.
Apple compared its proposed fees to Google Play's 20% link-out rates.

Sources

T1
Apple proposes to take a 15% cut of purchases made outside the App StoreTechCrunch

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