As part of its lawsuit with Epic Games, Apple has filed a proposed fee with the U.S. District Court for the Northern District of California for purchases made outside the U.S. App Store. In response, Epic Games said Apple’s proposed commission was too high.
Source image: Mariia Shalabaieva/unsplash.com
Specifically, Apple offers:
- Set a 15% commission for standard apps, currently 30% for in-app purchases / in-app purchases);
- 10% for Video Partner Program (VPP), News Partner Program (NPP), Small Application Partner Program (MPP) and subscription renewals;
- The small business program application is 5%.
To support its proposal, Apple also offers “Facts and expert opinion on proposed commission rates”.
The company stated: “According to expert analysis, a large number of U.S. developers, who account for the lion’s share of App Store revenue, will be able to monetize by linking to their apps at the prices offered, thereby creating significant competitive pressure on in-app purchases, a goal that the court has repeatedly emphasized.” Apple also pointed out “will be able to receive at least partial compensation for the value that its IP-protected tools, technology and services provide to developers, and courts and the Ninth Circuit have repeatedly held that these compensations are legitimate and pro-competitive.”
Apple reports “The proposed link commissions may also be compared to commissions from app stores that compete with the App Store”including Google Play, Samsung Galaxy Store and Amazon’s Android app market. The company also noted “The Google Play Store charges a “standard” link rate of 20%, a program rate of 15%, and a subscription rate of 10%, and Epic has matched these rates.”
Apple continues to insist that the tariff lawsuit should be stayed while the Supreme Court considers whether the company is held in contempt for charging a 27% fee on non-App Store purchases, adding that the proposal was only filed as part of Judge Yvonne Gonzalez Rogers’ order.
Comment on Apple’s proposal, Epic Games point outthe proposed fee is significantly higher than the Ninth Circuit’s guidelines for allowable fees, adding that she has approximately 60 days to file objections supported by expert testimony.
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