Apple's 27% Commission Rant

Apple is going to poison the one victory Epic secured in their lawsuit so bad nobody would ever think to use it. They want a 27% (!!!!) commission on any link from an app to a website, reporting every few weeks, AND the right to audit your books?? Insane. Commission, transaction reports, and payments Apple’s Small Business — including those who place buttons or links with calls to action in their apps — benefit from Apple’s proprietary technology and tools protected by intellectual property, and access to its user base. This includes Apple’s investment in developer tools, SDKs, and APIs, and updates to the platform itself. Apple also provides a safe and trusted experience on its platform, in which users and developers transact freely. Apple is charging a commission on digital purchases initiated within seven years from initial use, as described below. This will not capture all transactions that Apple has facilitated through the App Store, but it is reasonable Apple wants to account for the substantial risk Apple provides developing, including in facilitating linked transactions. Apple’s commission will be 27% on proceeds you earn from sales (“transactions”) to the user for digital goods or services on your website after a link out, i.e. they “continue” on the system described above. It provided that the sale was initiated within seven days and the digital goods or services can be used in an app. This includes (a) any applicable taxes and (b) any adjustments for refunds, transfers and chargebacks. For re-newing subscriptions, (a) is also limited, including with a free trial or offer, within seven days after a link out a transaction; and (c) each subscription is capped at the subscription is initiated (a share transaction). If you’re a participant in the Small Business Program, or if the transaction is an auto-renewal in the second year or later of an auto-renewing subscription, the commission will be 12.5%. These commission rates apply to all amounts paid by each user net of transaction taxes charged by you. You will be responsible for the collection and remittance of any applicable taxes for sales processed by a third-party payment provider. If you adopt this entitlement, you will be required to provide transaction reports within 15 calendar days following the end of each calendar month. Even if there were no transactions, you’re required to provide a report stating that is the case. If the evidence changes, we will update this page. The launch of this detail will still need to be included in the report, for example reports. In the future, if Apple develops an API to facilitate reporting, you will be required to adopt such API within 30 days with an update and/or requirements provided. If payment to Apple is due, you will receive an invoice based on the reporting and will be required to remit payment to Apple on the amount invoiced within 30 days of the invoice being issued. Late payments bear interest at the rate of one percent (1%) per month or the highest rate permitted by law, whichever is less. Please note that Apple has audit rights pursuant to the entitlement terms. This will allow Apple to review the accuracy of your record of digital transactions, ensuring the appropriate commission has been paid to Apple. Late payments accrue interest. Failure to pay Apple’s commission could result in the offset of in-app purchase proceeds owed to you, or other consequences such as removal of your app from the App Store, or termination from the Apple Developer Program.

A screenshot of a post by DHH criticizing Apple’s proposed rules after its legal dispute with Epic Games. The post sarcastically compares Apple’s 27% commission, recurring transaction reports, audit rights, and threat of App Store removal to Google demanding a cut of businesses found through search. It is used as an angry, incredulous reaction to platform fees and corporate overreach. EN: A screenshot of a post by DHH criticizing Apple’s proposed rules after its legal dispute with Epic Games. The post sarcastically compares Apple’s 27% commission, recurring transaction reports, audit rights, and threat of App Store removal to Google demanding a cut of businesses found through search. It is used as an angry, incredulous reaction to platform fees and corporate overreach.

• @gentoomemes / 8777 2024-01-17