Apple's Phil Schiller Testifies on App Store Fees Amid Epic Games Legal Battle
February 25, 2025
Phil Schiller, Apple's Senior Vice President, provided testimony in court regarding his initial opposition to the 27% commission on external App Store purchases, citing concerns over compliance risks and potential backlash from developers.
Epic Games has been a prominent critic of Apple's fees, arguing that they stifle competition and innovation within the app ecosystem.
Apple's new system allows developers to apply for a 'StoreKit External Purchase Link Entitlement', enabling them to direct users to alternative payment options while still charging a 27% commission on transactions made within seven days of using the link.
Schiller expressed worries that the high fee could create an antagonistic relationship between Apple and developers, effectively turning Apple into a 'collection agency' for payment enforcement.
U.S. District Judge Yvonne Gonzalez Rogers previously mandated that Apple lower barriers to alternative payment systems and allow developers to provide links to these options, although she expressed frustration over Apple's compliance.
The ongoing court hearings aim to determine if Apple violated the previous court order, with Judge Gonzalez Rogers considering whether to hold Apple in contempt for its unclear decision-making process.
Although Apple opened its App Store to alternative payment options 13 months ago after a lengthy appeal, it still imposes a commission of 12% to 27% on transactions made through these systems.
For developers enrolled in Apple's Small Business Program, the commission rate is reduced to 12%, providing some relief for smaller developers.
The 27% commission was established following a court ruling that found Apple did not operate a monopoly but recognized its anti-steering practices as anti-competitive, requiring the company to allow developers to link to external payment methods.
Schiller's doubts reflect the challenges Apple faces in balancing its revenue model with legal requirements stemming from the ongoing litigation with Epic Games.
This case is part of a larger trend, with various tech companies and regulators scrutinizing the practices of dominant online platforms, highlighting broader discussions about the fairness of app marketplace fees.
The outcome of this case may set important precedents for how digital marketplaces operate and how much control tech giants can exert over their platforms.
Summary based on 6 sources
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Sources

MacRumors • Feb 25, 2025
Apple's Phil Schiller Initially Opposed 27% App Store Fee on External Purchases
AppleInsider • Feb 25, 2025
Phil Schiller recounts concerns over App Store fees for external purchases in hearing
Law360 - The Newswire for Business Lawyers
Apple Exec Had Doubts Over New App Store Fee Compliance - Law360