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Technology

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

TechCrunch ·
Apple proposes to take a 15% cut of purchases made outside the App Store

After trying and failing to delay the matter, Apple on Thursday submitted its proposal for the commissions it wants to charge on purchases made using external links inside apps on its iOS devices.

In a new filing in the U.S. District Court of Northern California, Apple proposed new commissions of 15% for standard apps, with further discounts for developers who are enrolled in special Apple programs.

Under the proposed structure, small business developers would pay a 5% commission on payments, while those in the Video Partner Program, News Partner Program, and Mini Apps Partner Program would pay 10%. Subscription renewals would also be reduced to 10%, the filing states.

The iPhone maker has been engaged in a years-long legal battle with Epic Games over its alleged anti-competitive policies regarding App Store commissions, and had been attempting to stall its answer to the court’s request for this part of its commission structure.

Apple tried to argue that these lower court proceedings should wait until the Supreme Court ruled on another matter related to the case: Whether or not Apple was in contempt of a court order when it imposed a new 27% commission on purchases made through external links, and imposed rules that restricted how developers could present those links to customers.

The Supreme Court on Thursday rejected Apple’s bid to pause further action in the lower court’s case, forcing the company to reveal its planned commission structure.

Apple’s position is that it should be permitted to charge fees on in-app purchases made by users of its devices as a means to recoup its investments in the tools, technology, and services that allow it to maintain its App Store and software.

The company also compared its link-out fees to those on Google Play, which charges 20% link-out rates for standard apps, 15% for apps in special programs, and 10% for subscription renewals, noting that Epic Games had agreed to these rates.

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