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Mobile & Big Tech Source: TechCrunch

Apple Proposes Reduced 15% Cut for App Purchases Made Outside Official App Store

Apple has submitted a revised compliance framework to European regulators, proposing a lowered 15% commission fee for iOS app purchases processed through external third-party payment links.

Apple Proposes Reduced 15% Cut for App Purchases Made Outside Official App Store

Under intense regulatory scrutiny from the European Union's Digital Markets Act (DMA), Apple has unveiled a major restructuring of its developer commission terms. The tech giant is proposing to slash its revenue cut from 30% down to 15% for digital goods and subscriptions purchased through external web links embedded inside iOS apps.

The revised proposal is designed to address non-compliance warnings issued by the European Commission, which previously argued that Apple's initial external link rules and Core Technology Fee (CTF) imposed unfair financial burdens on developers trying to steer users away from Apple's in-app purchase system.

Breakdown of the New Fee Structure

Under the updated policy proposal, developers who opt to process payments outside the App Store will pay a 12% initial acquisition fee for new customer conversions during their first year, followed by a reduced 3% ongoing platform service fee. This replaces the previous combined 27% fee structure that sparked widespread criticism from major developers like Epic Games and Spotify.

Additionally, Apple has proposed doubling the threshold for its Core Technology Fee, exempting smaller developers and non-profit organizations from installation charges under 2 million annual installs.

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Developer Response and Global Implications

While the Coalition for App Fairness acknowledged the fee reduction as a step forward, developers maintain that platform fees for external web link transactions should be zero if Apple is not processing the payment or hosting the transaction infrastructure.

Regulatory authorities in Europe, Japan, and the United States are currently reviewing Apple's proposal to determine whether it satisfies competition mandates. If approved, the 15% model could become the global benchmark for mobile app store economics.

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