9to5mac And macrumors According to the report of The long-standing legal dispute between Apple and Epic Games is back in the headlines. This time, the issue concerns Apple’s commission on payments made outside the App Store. The company has filed a new proposal in a US court, seeking permission to charge a commission of 5 to 15 percent on purchases made through external payment systems or third-party services. Let’s try to understand this entire matter in simple terms.
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What is the matter after all?
This dispute dates back to 2020, when Epic Games accused Apple of running a monopoly on the App Store. and charging developers a whopping 30 percent commission. In 2021, after a lengthy legal battle,Yvonne Gonzalez Rogers had ordered Apple to allow developers to link to external payment systems within their apps, so they could avoid the hefty 30 percent commission.
But despite this order, Apple continued to charge commissions ranging from 12 to 27 percent on external transactions.Epic Games He then approached the court and accused the company of not following the court order.
Judge finds Apple guilty of contempt
Last year, a judge found Apple in contempt of court and ordered it to completely stop charging any fees for external payments.Apple appealed the decision., and while the appeals court upheld the original ruling, it also overturned the judge’s order that barred Apple from charging fees on external payments altogether. This means the question is no longer whether Apple can charge fees, but rather what a “reasonable” commission should be. That’s what the judge is tasked with deciding.
New proposal: Who gets how much commission
According to Apple’s new proposal, commission rates will be decided according to different developer categories.
- Apps that normally pay a 30 percent commission on payments within the App Store are charged the highest commission for external payments, i.e.15 percent Commission will apply.
- Apps affiliated with the News Partner Program, Video Partner Program, and Mini Apps Partner Program, as well as subscription renewals 10 percent Commission is proposed.
- The lowest for developers participating in the Small Business Program, i.e. 5 percent A commission has been proposed.
It’s worth noting that most developers on Apple’s platform fall under this Small Business Program. These developers have already been paying a 15 percent commission on purchases made through the App Store’s billing system since 2020. If this proposal is approved, accepting external payments will be slightly cheaper for small developers, but it won’t be completely free.
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Google’s story is a little different.
For your information, let me tell you Epic Games has been fighting this same battle for years, not just with Apple, but also with Google. Google opened its Play Store to external billing on June 30th of this year and reduced its commission to 10 percent, regardless of the payment method used. The following month, in July, Google also began allowing third-party app stores on the Android platform.
But the controversy hasn’t ended there. Epic Games says that while Google may have allowed the installation of third-party app stores, the process has been made so complicated that it’s difficult for the average user to follow. After it was demonstrated in court that installing third-party app stores on Android requires numerous complicated steps, the judge ordered Google to remove this “anti-competitive friction.”
Who will be affected by this?
If Apple’s proposal is approved by the court, it will directly impact developers who want to steer their users away from the App Store to external payment systems. This will certainly be a relief for larger developers, as 15 percent is significantly lower than the current 30 percent. However, companies like Epic Games want Apple to abstain from charging any commission on external payments, arguing that Apple has no direct role in transactions outside the App Store.
What will happen next?
Now this whole matter JJ Gonzalez is in Rogers’ court, They will have to decide whether Apple’s proposed 5 to 15 percent commission is “reasonable.” This decision will not be limited to Apple and Epic Games, but could set a precedent for the entire app industry. Furthermore, it remains to be seen how the court enforces the order to remove “anti-competitive friction” in the ongoing Google case.
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