Apple Proposes New Commission Structure for Alternative App Store Payments

Staff Report: PNN

Apple has submitted a new proposal outlining how much commission it would charge on purchases made through links within apps that direct users outside the App Store. The company submitted the proposed commission structure on Thursday (August 13) as part of an ongoing legal process in a U.S. court.

Under the proposal, Apple wants to charge a 15 percent commission on payments completed through external links for ordinary apps. However, the company has proposed lower commission rates for developers participating in certain Apple programs.

For developers classified as small businesses, Apple has proposed a commission rate of 5 percent. Meanwhile, developers participating in the Video Partner Program, News Partner Program and Mini Apps Partner Program would be charged 10 percent. Apple has also proposed reducing the commission on subscription renewals to 10 percent.

Apple has been involved in a long-running legal dispute with technology company Epic Games over its App Store commission policies. Apple has been accused of following anti-competitive practices on the App Store. In particular, the issue of allowing users to make payments outside the app and Apple’s ability to collect commissions from those transactions has become one of the key aspects of the legal battle.

Apple had previously sought to delay the court proceedings. The company argued that proceedings in the lower court should be suspended until the U.S. Supreme Court issued a decision on a related matter.

At the center of the dispute is Apple’s previous 27 percent commission structure. Along with imposing the commission on purchases made through external links, Apple had also placed restrictions on how developers could inform customers about those links. Whether Apple violated a court order by maintaining those restrictions has also become part of the legal dispute.

However, on Thursday, the Supreme Court rejected Apple’s request to suspend the proceedings in the lower court. As a result, Apple was required to present its position on the proposed commission structure.

Apple has argued that the company makes substantial investments in operating the App Store, maintaining its technology infrastructure, software and related services. According to the company, it should therefore have the right to collect commissions on transactions made through apps as part of recovering those costs.

In support of its proposal, Apple also referred to Google’s Play Store commission structure. Apple claimed that Google charges a 20 percent commission on transactions made through external links for ordinary apps, 15 percent for certain special programs and 10 percent on subscription renewals. Apple also told the court that Epic Games had agreed to these rates.

The court’s next consideration of Apple’s new proposal will now be closely watched. The proposal could mark a new development in the long-running dispute between Apple and developers over commission rates and payment options outside the App Store.