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Chronicles

The story behind the story

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In a filing in the Epic lawsuit, Apple says it “could charge a commission” if developers use a competing payments platform, following a similar Google policy

Benjamin Mayo / 9to5Mac :

9to5Mac Benjamin Mayo

Context & Ripple Effects

Apple’s filing follows its stated position that commission should apply even when developers use an alternative payment platform. The dispute is therefore about whether payment choice changes Apple’s economic claim on App Store transactions, not simply whether developers can show another checkout route.

That position later collided with a US injunction Apple said it would comply with while appealing, and its subsequent bid to pause the restriction on outside-payment commissions shows how central the fee itself became in the Epic fight.

First-order effects

  • Developers considering competing payment platforms face the prospect that Apple’s commission would remain payable, reducing the immediate savings from bypassing in-app purchase.
  • Apple aligns its litigation posture with Google’s similar commission policy, preserving its claim to payment revenue even where it does not process the transaction.

Second-order effects

  • Alternative payment providers must compete against a residual Apple fee rather than against Apple’s in-app-purchase fee alone, making their pricing proposition harder to establish for developers.
  • Epic’s challenge shifts toward the terms Apple can attach to external payments, not solely the availability of external payment links.

Third-order effects

  • The later injunction and Apple’s effort to suspend it point to a broader contest over whether platform operators can retain a transaction-based take rate after payment processing is opened to rivals.
  • If courts constrain commissions on outside transactions, platform gatekeeper leverage will be tested at the level of commercial terms rather than only payment exclusivity.

The trend: App-store payment disputes are moving from exclusive checkout systems toward judicial limits on the fees platforms may impose when developers route payments elsewhere.

Discussion

  • @drbarnard David Barnard on x
    What I've come to assume is now in black and white in this filing from Apple: If the injunction goes into effect, Apple seems likely to charge a commission on any transactions that start in the app, even if they are completed on the web. https://www.scribd.com/... https://twitter…
  • @jeffbarr @jeffbarr on x
    Use New Amazon EC2 M1 Mac Instances to Build & Test Apps for iPhone, iPad, Mac, Apple Watch, and Apple TV - https://aws.amazon.com/... #AWS #reinvent - Awesome post, @sebsto ! https://twitter.com/...
  • @sarahintampa Sarah Perez on x
    @drbarnard I don't think we can call it ‘likely’ yet. It's just being used to support its argument for a stay here. commissions on non-apple IAPs (web payments) could make apple liable for the fraud taking place outside the app store. that's a big decision for apple to make
  • @drbarnard David Barnard on x
    @sarahintampa Seeming like we won't find out either way based on the likelihood of the administrative stay being granted. I still think they should drop the rate so that linking out matters less (conversions are so much higher using IAP), but that doesn't fit Apple's MO
  • @randypicker Randy Picker on x
    I think Google and Apple have both been pretty clear about this. The in-app purchase mechanism has just been a convenient way to charge for all of the services that they provide. The point has never really been about processing payments; indeed Apple outsources that. https://twit…
  • @eric_seufert Eric Seufert on x
    Heads I win, tails you lose https://9to5mac.com/...
  • @carnage4life Dare Obasanjo on x
    Apple has indicated that it's going to follow Google's playbook in South Korea and even if they're forced to allow alternate payment mechanisms for IAPs, they'll still require a cut. This basically defeats the entire point of the lawsuit and legislations. https://9to5mac.com/...
  • @reneritchie Rene Ritchie on x
    Pretty much exactly what Tim Cook said on the stand back during the trial... https://twitter.com/...
  • @drbarnard David Barnard on x
    “Epic misled the district court into concluding that commission rates would affect licensee royalties, but Epic's own license agreement makes clear that royalties are based on gross sales, without regard to the amount of commission paid.” https://www.scribd.com/...
  • @iansherr Ian Sherr on x
    NEW: Apple says it may start charging commissions on in-app purchases made outside its App Store as it appeals injunction going into effect ~Dec 8. Tip @techmeme https://www.cnet.com/...