Apple's Commission Proposal Sparks Legal Battle with Epic Games

Apple has been engaged in a years-long legal battle with Epic Games over its alleged anti-competitive policies regarding App Store commissions.

Apple Submits Proposal for Commission Structure

After trying 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.

The proposed structure would see small business developers 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 attempting to stall its answer to the court's request for this part of its commission structure, but was forced to reveal its planned commission structure after the Supreme Court rejected its bid to pause further action in the lower court's case.

Apple's Position on Commission Fees

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 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.

• The proposed commission structure has sparked a heated debate, with some developers and experts arguing that Apple's fees are too high and restrictive, while others see it as a necessary means to support the App Store and its ecosystem.