Apple proposes 15% US link-out fee as it seeks settlement talks with Epic Games

• Apple proposed a 5% fee for apps in the Small Business Program.
• Epic says Apple's proposed fees are outside the Ninth Circuit's guidance.
• Apple approached Epic about settlement talks before filing its motion, but Epic did not consent.

Apple has proposed charging up to 15% on purchases made through payment systems outside the App Store as part of the ongoing legal dispute with Epic Games.

The filing follows the Supreme Court's rejection of Apple's request to pause lower-court proceedings while it reviews whether Apple can be held in contempt for charging a 27% commission on off-App Store purchases. 

Judge Yvonne Gonzalez Rogers previously ordered Apple to allow developers to direct users to alternative purchasing methods.

Apple's proposed fee structure would charge 15% for standard apps subject to the existing 30% in-app purchase commission, 10% for apps in the Video Partner, News Partner and Mini Apps Partner Programs and subscription renewals, and 5% for apps participating in the Small Business Program.

Settlement Talks

Apple also filed a separate motion asking Judge Gonzalez Rogers to refer the companies to a settlement conference before Magistrate Judge Joseph C. Spero. The iPhone maker said it approached Epic's lawyers about the request on August 11th, but Epic did not consent.

Apple then argued that a confidential settlement process could help the companies reach a practical resolution and avoid prolonged proceedings. The filing does not contain a settlement offer from Apple.

Epic, however, has rejected Apple's proposed fees, saying they are “far outside of the bounds” of the Ninth Circuit's guidance on permissible fees. 

“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," said Epic Games in a post. 

“Apple proposed linkout fees of 15% for standard apps and 5% for Small Business Program apps. Epic believes these fees are far outside of the bounds of the Ninth Circuit's guidance on permissible fees, and we have roughly 60 days to file our opposition supported by expert witnesses."