Apple and Epic argue over how much Apple should get from purchases made outside the App Store
Apple has proposed a structure to collect fees on digital purchases made via external links that don't use the company's in-app purchase system, but Epic says this is 'far outside of the bounds' of the court's guidance.
Intelligence analysis by Llama
Apple wants to charge fees on external purchases, but Epic disagrees, saying this is not allowed under the court's guidance. Apple's proposal includes 15% fees for standard apps and 5% for Small Business Program apps.
Imagine you're a game developer, and you want to sell your game on the App Store. But you also want to sell it on your own website, so you can keep more of the money. Apple wants to charge you a fee for selling your game on your own website, but Epic says that's not fair. This is a big fight between Apple and Epic about how much money Apple should get from selling games on the App Store.
Analysis
Apple's Proposal for External Purchase Fees
In a new filing in its long-running legal dispute with Epic Games, Apple has proposed a structure that would allow it to collect fees on digital purchases made via external links that don’t use the company’s in-app purchase system. This proposal has been met with resistance from Epic, which claims that Apple’s request is ‘far outside of the bounds’ of the court’s guidance.
Under Apple’s proposal, the company would collect 15 percent of fees from purchases in ‘standard apps’ and 10 percent of fees for apps in the Video Partner Program, the News Partner Program, the Mini Apps Partner Program, and subscription renewals. For apps in the Small Business Program, Apple would collect 5 percent of fees.
However, Apple says its ‘necessary costs’ to allow external purchases, as defined by the Ninth Circuit, ‘would be essentially zero.’ The company argues that, based on an ‘expert analysis,’ at the proposed rates, ‘it appears that large numbers of U.S. developers collectively accounting for the lion’s share of App Store revenue will be able to link out profitably.’
Apple also says the rates would let it recoup ‘at least some compensation’ for its tools, technologies, and services it provides to developers.
Epic’s Response
Epic has already responded to Apple’s proposal, saying that the company’s request is ‘far outside of the bounds’ of the court’s guidance. Epic believes that Apple’s proposed fees are not in line with the Ninth Circuit’s definition of ‘necessary costs,’ and that the company should not be allowed to charge any fees on external purchases.
Implications for the App Store
The dispute between Apple and Epic has significant implications for the future of the App Store and the way developers make money on the platform. If Apple is allowed to charge fees on external purchases, it could have a major impact on the way developers create and distribute their apps. On the other hand, if Epic is successful in its opposition to Apple’s proposal, it could lead to a more open and competitive app store.
What’s Next
The Supreme Court has agreed to hear arguments about whether Apple willfully violated the April 2025 ruling, which found that the company ‘willfully’ didn’t comply with the 2021 Epic Games v. Apple injunction. This could have significant implications for the future of the App Store and the way developers make money on the platform.
Key points
- Apple has proposed a structure to collect fees on digital purchases made via external links that don't use the company's in-app purchase system.
- Epic disagrees with Apple's proposal, saying it's 'far outside of the bounds' of the court's guidance.
- The dispute has significant implications for the future of the App Store and the way developers make money on the platform.
- The Supreme Court has agreed to hear arguments about whether Apple willfully violated the April 2025 ruling.
If Apple is allowed to charge fees on external purchases, it could lead to a more open and competitive app store, where developers have more freedom to create and distribute their apps. This could also lead to more innovation and better apps for users.
If Apple is not allowed to charge fees on external purchases, it could lead to a loss of revenue for the company, which could impact its ability to invest in new technologies and services. This could also lead to a less competitive app store, where developers have less freedom to create and distribute their apps.
