Apple has filed a proposal to charge developers a 5 to 15 percent commission on digital purchases made through external links, reigniting debate over its App Store business model. This filing follows years of litigation with Epic Games and specific guidance from the Ninth Circuit Court of Appeals regarding 'necessary costs.'
The Proposed Fee Structure
In a recent legal filing, Apple outlined a tiered commission structure for purchases conducted via external links outside of its proprietary in-app payment system. The proposal seeks to charge 15 percent for what it terms 'standard apps,' 10 percent for those participating in specific partner programs like News, Video, and Mini Apps, as well as subscription renewals. Developers qualifying for the Small Business Program would face a 5 percent fee. Apple justifies these charges as necessary to recoup expenses related to the platform's development, tools, and services, despite simultaneously noting that its technical 'necessary costs' for enabling external linking could be interpreted as effectively zero.
A History of Legal Friction
The current dispute stems from a long-running antitrust battle between Apple and Epic Games that began in 2020. Judge Yvonne Gonzalez Rogers previously ruled that Apple must allow developers to utilize external payment options. However, Apple initially continued to collect commissions on these transactions, leading to accusations of non-compliance. In April 2025, the judge found Apple in contempt for failing to follow the injunction, ordering the company to cease such fees. Subsequently, a Ninth Circuit Court of Appeals panel upheld the order but allowed Apple to petition for a commission based on 'necessary costs,' which set the stage for this week's filing.
Epic Games’ Rebuttal
Epic Games has responded sharply to the filing, asserting that Apple’s proposed rates are significantly beyond the scope of the appellate court’s guidance. Epic highlights that Apple essentially admitted, under the Ninth Circuit's own definition of 'necessary costs,' that it would charge 0 percent for external transactions if strictly following that metric. The gaming company maintains that the proposed 5 to 15 percent rates are an attempt to circumvent the spirit of the court’s previous rulings. Epic now has approximately 60 days to prepare a formal opposition supported by expert testimony to challenge these figures before the presiding judge.
Broader Industry Comparison
The legal environment surrounding app store practices is currently in flux, with Google facing similar pressures. In parallel to the Apple situation, Google recently lost a court battle where it was ordered to simplify the installation process for third-party app stores on Android to eliminate 'anticompetitive friction.' Google has already opened its Play Store to alternative billing systems and reduced its own commission to 10 percent, regardless of the payment processor used. These developments highlight a mounting trend where regulators are forcing platform operators to relinquish their historical control over payment processing, though the resulting fee structures remain a subject of intense litigation.
⚖ The Balanced View
Supporting view
Apple argues that it should be allowed to recoup at least some compensation for the extensive array of tools, technologies, and services it provides to the developer ecosystem.
Concerns & criticism
Epic Games and some industry critics contend that any fee on external links exceeds the court's 'necessary costs' guidance and remains an attempt to maintain control over developer revenue.
→What's next
Epic Games is expected to submit a formal opposition to Apple's proposal within the next two months. The court will then evaluate whether the suggested fees constitute 'necessary costs' or represent an excessive charge, while the Supreme Court simultaneously considers arguments regarding Apple's past compliance.
