Battle of the Giants: Apple and Epic’s Dispute Over App Store Revenue Split

Apple’s Proposal to Collect Fees on External Digital Purchases

In a recent development in the legal battle between Apple and Epic Games, Apple has put forward a new structure that would enable it to impose fees on digital transactions made through external links that bypass the company’s in-app purchase system. Epic Games has swiftly responded, criticizing Apple’s proposal as being beyond the court’s limits.

Background on the Legal Dispute

Following a ruling by California district court judge Yvonne Gonzalez Rogers in April 2025, Apple was prohibited from collecting commissions on external purchases due to the company’s non-compliance with the 2021 injunction in the Epic Games v. Apple case. However, a panel of the Ninth Circuit Court of Appeals suggested that Apple could charge fees based on “necessary costs,” leading to Apple’s recent fee proposal.

Apple’s Proposed Fee Structure

Under Apple’s plan, the company aims to collect fees as follows:

• 0% for purchases made via external links to the web
• 15% for standard apps
• 5% for Small Business Program apps

Apple contends that its “necessary costs” for facilitating external purchases, as interpreted by the Ninth Circuit, would essentially amount to zero. The company asserts that, based on an expert analysis, the proposed rates would allow a significant number of U.S. developers, who generate a substantial portion of App Store revenue, to link out profitably. Additionally, Apple states that these fees would enable it to recover some compensation for the tools, technologies, and services it offers to developers.

Apple acknowledged in its filing that, according to the Ninth Circuit’s definition of “necessary costs,” it would not charge any fees for purchases made via external links to the web.

The proposed linkout fees of 15% for standard apps and 5% for Small Business Program apps have been met with opposition from Epic Games. Epic argues that these fees exceed the permissible limits set by the Ninth Circuit and intends to file an opposition supported by expert witnesses within the next 60 days.