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Apple proposes 15%, 10%, and 5% commissions on US linked-out app purchases in Epic lawsuit settlement

Apple has proposed tiered commissions for external purchases made via links from US apps, as part of its legal dispute with Epic Games.

WHY IT MATTERS

This proposal could redefine revenue-sharing models for app developers, particularly those using external payment systems. The tiered structure may influence how developers price services and handle renewals, especially for small businesses.

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The three things worth knowing

01

Standard apps would pay 15% commission on linked-out purchases under Apple’s proposal.

02

Partner programs and renewals would incur a 10% commission, while Small Business apps would pay 5%.

03

The proposal is part of Apple’s response in the ongoing Epic v. Apple legal dispute.

THE READ

What the cluster adds up to.

ORIGINAL ANALYSIS

Apple’s proposal introduces a tiered commission structure for purchases made outside its in-app payment system but linked from within US apps. This marks a shift from its traditional 30% fee for in-app transactions, though the new rates still represent a significant revenue share for Apple. The proposal appears to be a response to legal and regulatory pressure, particularly from the Epic v. Apple case, which has challenged Apple’s payment policies as anti-competitive.

The tiered approach, 15% for standard apps, 10% for partner programs and renewals, and 5% for Small Business apps, creates a sliding scale that could incentivize developers to participate in Apple’s ecosystem. Small businesses, in particular, may benefit from the lower rate, but the proposal does not eliminate the financial burden of external payment processing. Developers will need to weigh the cost of compliance against the potential reach and convenience of Apple’s platform.

The proposal’s scope is currently limited to the US and tied to the outcome of the Epic lawsuit. If adopted, it could set a precedent for other markets, but its long-term impact remains uncertain. Developers may still face operational complexities, such as tracking linked-out purchases and ensuring compliance with Apple’s terms. The proposal also does not address whether Apple will allow alternative payment systems within apps, leaving some ambiguity for developers seeking full autonomy over transactions.

For engineers and product teams, this proposal introduces new considerations for app design and monetization. Integrating external payment links while adhering to Apple’s commission structure may require additional development effort, particularly for apps with complex subscription or renewal models. The proposal’s focus on renewals and partner programs suggests Apple is aiming to retain control over recurring revenue streams, which could influence how developers structure their pricing and user engagement strategies.

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Techmeme Epic v. Apple: Apple proposes commissions on US linked-out purchases of 15% for standard apps, 10% for partner programs and renewals, 5% for Small Business apps (Marcus Mendes/9to5Mac) Open ↗