Key Takeaways:
Apple has proposed charging developers up to 15 percent on purchases completed through external links, setting up a fresh courtroom clash with Epic Games over how much the iPhone maker can collect for transactions it does not process.
Apple submitted its commission proposal Thursday to the U.S. District Court for the Northern District of California, halving its standard 30 percent App Store rate for purchases made when users tap an external link inside an app and complete the transaction on the developer's website. The filing follows the Supreme Court's rejection of Apple's bid to pause the fee-setting proceeding, forcing the company to reveal its planned structure.
"Apple proposed linkout fees of 15% for standard apps and 5% for Small Business Program apps. Epic believes these fees are far outside of the bounds of the Ninth Circuit's guidance on permissible fees," Epic Games said in a post on X, adding that Apple admitted that under the Ninth Circuit's definition of "necessary costs" it would charge zero percent for purchases made via web linkouts.
Under the proposed structure, developers enrolled in Apple's Small Business Program would pay 5 percent on external purchases, while those in the Video Partner Program, News Partner Program, and Mini Apps Partner Program would face 10 percent. Subscription renewals would also drop to 10 percent. Apple previously charged up to 27 percent on link-out purchases before the court found that structure violated its earlier order and halted the practice in April 2025.
The dispute traces back to Apple's antitrust battle with Epic Games, which led to an order requiring Apple to let developers direct users to outside payment options. An appeals court later upheld the contempt finding while also ruling that Apple can receive compensation for its intellectual property, sending the fee question back to the district court where Judge Yvonne Gonzalez Rogers will decide what Apple can reasonably charge.
Apple argues that a zero percent fee would fail to account for the value the App Store provides developers, including distribution, platform access, security tools, and other services connected to reaching iPhone users. The company also compared its link-out rates to Google Play, which charges 20 percent for standard apps, 15 percent for apps in special programs, and 10 percent for subscription renewals — rates Epic agreed to in its dealings with Google.
The proposed rates would cut Apple's take on external purchases by half for standard apps, from the 30 percent in-app commission to 15 percent on link-outs. For small developers, the 5 percent rate represents a significant reduction from the 15 percent they currently pay under the Small Business Program for in-app purchases. Apple says these rates will allow many U.S. developers to profitably link out, increasing competition against in-app purchases.
Epic has roughly 60 days to file its opposition supported by expert witnesses. Apple is expected to file its brief with the Supreme Court by September 14, keeping the wider legal battle active even as the lower-court fee proceedings move forward. The next stage could turn less on whether Apple can charge a fee at all and more on how that fee should be calculated under the Ninth Circuit's guidance.
The outcome carries direct revenue implications for Apple's services segment, which has become a key growth driver as hardware sales mature. A court-imposed rate closer to zero would erode a meaningful portion of App Store commission income, while a rate near Apple's proposal would preserve much of the economics of its platform even as developers gain more freedom to route transactions outside its payment system.
This article is for informational purposes only and does not constitute investment advice.
