● Covered by 4 sources · 7 reportsMedium impact7 neutral
Apple Proposes 5-15% Commission for Off-App Store Purchases Amidst Legal Battles
Key points
- Apple proposed 5-15% commission for off-App Store purchases.
- Supreme Court denied Apple's request to pause proceedings.
- Lower court will determine final commission rates.
- Apple also sought settlement talks with Epic Games.
- Epic Games called Apple's proposed rates "far outside of the bounds."
Commission Proposal Submitted
Apple has submitted its proposed fee structure to the US District Court of Northern California, outlining commissions it seeks to charge on purchases made through external links within iOS apps. The proposal suggests rates ranging from 5% to 15% for transactions that do not use Apple's in-app purchase system.
Supreme Court Denies Stay
The submission follows the Supreme Court's denial of Apple's request to pause the lower-court proceedings. Apple had argued that the Supreme Court's review of a contempt ruling against the company could affect the outcome of the fee-setting process, but the lower court was ordered to continue its work.
Previously, Judge Yvonne Gonzalez Rogers had rejected Apple's initial request to pause the App Store fee proceedings. The Supreme Court did grant Apple a temporary 24-hour extension to a deadline for submitting its proposal, allowing more time to consider Apple's request for a longer stay.
Proposed Fee Structure
Under Apple's proposal, standard apps would pay a 15% commission. Developers enrolled in specific programs would see lower rates: 10% for apps in the News Partner Program, Video Partner Program, and Mini Apps Partner Program, and for subscription renewals. Apps part of the Small Business Program would pay a 5% commission. Apple stated that the "vast majority" of developers qualify for the Small Business Program.
Epic Games' Response and Settlement Efforts
Epic Games has responded to Apple's proposal, stating that the suggested rates are "far outside of the bounds" of the court's guidance. The ongoing legal dispute between Apple and Epic Games dates back to 2020.
In addition to the commission proposal, Apple also filed a motion requesting a court-ordered settlement conference with Epic Games, despite Epic's initial refusal to engage in such talks.
Background of the Dispute
The current proceedings stem from a 2021 injunction by Judge Yvonne Gonzalez Rogers, which required Apple to allow developers to direct users to alternative payment methods. Apple was later found in contempt for imposing a 27% commission on purchases made through these external links. The Supreme Court agreed to review this contempt ruling, with Apple arguing that the original injunction did not explicitly prohibit charging a commission.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
Apple submitted a proposal to charge commissions on purchases made through external links within iOS apps, following the Supreme Court's rejection of its attempt to delay the matter. The proposed rates include a 15% commission for standard apps, with lower rates for small businesses and specific partner programs, impacting developers' revenue models on the iOS platform.
Apple has proposed to the court a commission structure of 5% to 15% for purchases made through external payment systems in the United States. This proposal is part of the ongoing legal dispute with Epic Games regarding App Store payment policies. The court will determine a fair commission rate after previous rulings on external payment links.
Apple has filed a motion requesting a court-ordered settlement conference with Epic Games, despite Epic's initial refusal. This move comes as Apple also submitted its proposed commission structure for external App Store payments, following a Supreme Court rejection of Apple's request to pause lower-court proceedings.
Apple has proposed a fee structure for digital purchases made outside the App Store via external links, following a court ruling that allows it to charge a commission based on "necessary costs." Epic Games has stated that Apple's proposed rates are "far outside of the bounds" of court guidance, continuing the legal dispute.
Apple submitted its proposed fee structure for purchases made outside the App Store system in the Epic Games case, suggesting commissions ranging from 5% to 15%. This proposal follows the Supreme Court's denial of Apple's request to pause lower-court proceedings regarding off-App Store purchase fees, allowing the legal process to continue.
The Supreme Court granted Apple a temporary 24-hour stay, pausing a lower court deadline for Apple to propose App Store commission rates on external purchases. This allows the Supreme Court more time to consider Apple's request for a longer stay while it reviews a contempt ruling against the company.
A judge denied Apple's request to pause proceedings regarding App Store fees, requiring Apple to submit its proposed external payment commission within 24 hours. This decision means the lower court will continue to determine the commission Apple can charge on purchases made outside the App Store, despite Apple's appeal of a contempt ruling to the Supreme Court.