Apple proposes taking a 5-to-15 percent cut from external App Store payments

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Apple proposes taking a 5-to-15 percent cut from external App Store payments

Engadget · 2 hours ago

Apple has asked a US court to permit fees of 5 to 15 percent on purchases made through external payment links or third-party services, rather than through its App Store billing system. The proposal is significant because it could determine how much developers can save by directing customers to alternative payment methods in Apple’s continuing legal dispute with Epic Games.

Apple proposes a 15 percent fee for apps otherwise subject to its 30 percent App Store commission, 10 percent for certain partner-programme apps and subscription renewals, and 5 percent for Small Business Programme participants. Judge Yvonne Gonzalez Rogers previously found Apple in contempt over its external-payment fees, while an appeals court later ruled that Apple could charge some fee; the judge must now decide what is fair. Google, facing a related Epic case, has lowered its Play Store commission to 10 percent and has been ordered to make installing rival Android app stores less difficult.

  • Apple seeks court approval for 5-to-15 percent external-payment fees.
  • A judge must decide what commission is fair.
  • Google faces pressure to ease rival app-store installation.

Both sides, in good faith

The strongest fair case each way — we don't pick a winner.

The case for

Apple can argue that developers using external payment links still benefit from the App Store’s distribution, discovery, security infrastructure and customer reach, so a modest commission is a fair contribution to those services. A lower 5-to-15% rate recognises that Apple is no longer processing the transaction or assuming all associated costs, while helping sustain the platform that enables the sale. Supporters may also say a consistent fee prevents large developers from free-riding on the ecosystem while smaller developers continue to pay standard commissions.

The case against

Critics can argue that charging a commission on payments Apple neither processes nor facilitates undermines the purpose of allowing external payment options. Developers may still face compliance burdens and lose the economic benefit of lower-cost payment providers, leaving consumers with little meaningful choice and preserving Apple’s control over in-app commerce. They may contend that App Store distribution should be compensated through transparent listing or service fees, rather than a percentage of revenue earned outside Apple’s payment system.

Software Technology

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