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Apple proposes commissions of up to 15% for off-App Store purchases in the US

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Why This Matters

Apple's proposal to reduce commissions for off-App Store purchases signifies a strategic move amid ongoing legal battles, potentially reshaping app monetization and developer relationships. This development could influence future regulations and competition within the app ecosystem, impacting both consumers and developers. The outcome may set a precedent for how tech giants manage app store policies and fees in the U.S.

Key Takeaways

Apple has submitted its proposal for the fees it should be allowed to charge for purchases made outside of the App Store system in the Epic Games case. Here are the details.

Apple submits off-App Store commission proposal

Following several attempts to pause the District Court proceedings that will determine what fee, if any, Apple can charge for purchases made outside of the App Store’s IAP system, the company has now submitted its proffer with the proposed fee structure.

Apple’s submission came just as the Supreme Court denied the company’s request to pause the lower-court proceedings while it reviews whether Apple can be held in contempt for charging a 27% commission on off-App Store purchases, after Judge Yvonne Gonzalez Rogers issued an injunction requiring the company to let developers direct users to alternative purchasing methods.

Apple argued before the lower court and, later, before the Supreme Court, that the Court’s decision could affect the outcome of the fee-setting proceedings and that the proceedings should therefore be put on hold until the Court issues its decision. However, the Supreme Court denied Apple’s request, allowing the lower-court proceedings to continue while its review is underway.

As a result, Apple has now submitted its proposal, which calls for:

15% for standard apps, which are subject to a 30% in-app purchase (“IAP”) commission;

10% for the Video Partner Program (“VPP”), the News Partner Program (“NPP”), the Mini Apps Partner Program (“MPP”), and subscription renewals; and

5% for Small Business Program apps.

According to Apple, “fact and expert evidence with respect to these proposed commission rates are concurrently submitted”. The company adds:

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