Apple and Epic Argue Over External Link Fees Outside App Store
Apple and Epic Games clash again in court regarding commission rates for digital purchases made through external links.
Stock photo for illustration only, not from the actual event
- Apple proposed external link fees of 15% for standard apps and 5% for small businesses.
- Epic Games argues these proposed fees far exceed the Ninth Circuit court's guidance.
- Apple acknowledged its necessary costs under the court definition would essentially be zero.
The long-running legal battle between Apple and Epic Games has entered a new chapter as Apple filed a proposed structure to collect fees on digital purchases made via external links that bypass the company's in-app payment system. Epic Games quickly responded, stating that Apple's request falls far outside the bounds of the court's guidance.
Back in April 2025, California district court judge Yvonne Gonzalez Rogers ruled that Apple willfully failed to comply with her 2021 injunction in the Epic Games v. Apple case, meaning Apple could not collect a commission on external purchases at that time. However, a Ninth Circuit Court of Appeals panel later indicated that Apple should be permitted to charge a commission based on necessary costs, prompting Apple's fee proposal filed on Thursday. Meanwhile, the Supreme Court has also agreed to hear arguments regarding whether Apple willfully violated the April 2025 ruling.
Under Apple's proposal, the company would collect:
- 15 percent for standard applications
- 5 percent for Small Business Program applications
Stock photo for illustration only, not from the actual event
Nevertheless, Apple stated in the filing that its necessary costs to allow external purchases, as defined by the Ninth Circuit, would essentially be zero. The company argued based on an expert analysis that the proposed rates would allow large numbers of U.S. developers who account for the lion's share of App Store revenue to link out profitably. Apple further asserted that these rates would allow it to recoup at least some compensation for the tools, technologies, and services it provides to developers.
This ongoing dispute over external linkouts marks a crucial turning point for mobile application marketplaces. If developers are permitted to direct users to external websites for transactions without paying the traditional 15% to 30% platform commission, the entire app store business model faces significant disruption. Apple's effort to secure alternative compensation highlights its strategy to protect ecosystem revenues, while Epic Games continues to push for maximum freedom and lower costs for developers.
"Apple's filing is in, and Apple admitted that under the Ninth Circuit’s definition of “necessary costs” they would charge 0% for purchases made via linkouts to the web."
Epic Games
In response to the filing, Epic Games released a statement pointing out that Apple admitted under the Ninth Circuit's definition of necessary costs, they would actually charge 0% for purchases made via web linkouts.
Epic noted that Apple proposed linkout fees of 15% for standard apps and 5% for Small Business Program apps, which Epic believes are far outside the bounds of the Ninth Circuit's guidance. Epic Games stated they have roughly 60 days to file their opposition supported by expert witnesses.
Source: The Verge
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