15 Percent Cut From External App Store Payments

Key Points:

• Apple has proposed to the court a fee structure allowing it to collect up to a 15% commission on purchases made outside its App Store payment system in the U.S., as part of its ongoing legal battle with Epic Games.
• The proposal includes a 15% fee for apps that pay Apple a 30% cut on App Store payments, a 10% fee for apps in its News, Video, and Mini Apps Partner Programs and subscription renewals, and a 5% fee for apps in its Small Business Program.
• The Small Business Program, which covers the majority of developers, currently pays Apple a 15% commission on App Store purchases; Apple aims to charge a lower 5% fee for external payments under this proposal.
• Judge Yvonne Gonzalez Rogers ordered Apple in 2021 to allow developers to link to external payment systems to avoid the 30% App Store commission, but Apple continued taking 12-27% fees on these transactions, leading to accusations of non-compliance by Epic Games.
• After being found in contempt and ordered to stop collecting fees on external payments, Apple appealed; the appeals court upheld the contempt ruling but overturned the ban on collecting fees, leaving the judge to decide a fair commission rate.