Phil Schiller testified on February 24, 2025, that he initially objected to Apple charging a commission when customers completed digital purchases outside the App Store. He said the plan could create compliance problems, force Apple to audit developers’ web sales and damage developer relationships. Apple nevertheless approved a 27% external-purchase commission in January 2024. The practical U.S. rules changed again in May 2025, when Apple updated its guidelines to allow purchase-directed links in the U.S. storefront.
What Schiller objected to
Schiller’s testimony, as reported by the Associated Press and TechCrunch, was about a specific fee—not Apple’s entire App Store commission system.
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Legal and compliance risk
He questioned whether Apple could collect money from a transaction completed outside Apple’s payment system while complying with the court order requiring Apple to permit communications about alternative payment methods. That was his concern about the policy’s legal exposure, not a court finding that the fee was illegal.
Audits and transaction reporting
Because Apple would not process the external payment, Schiller warned that the company might need audit rights, sales reports or other controls to determine which transactions generated a payment obligation.
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A more antagonistic developer relationship
He also testified that the arrangement could make Apple’s relationship with developers “antagonistic.” His concerns overlapped with arguments made by Epic Games, but the testimony does not show that Schiller sided with Epic or rejected Apple’s broader business model.
Why the external-purchase fee existed
The dispute began after Epic bypassed Apple’s in-app payment system in Fortnite in August 2020. On September 10, 2021, Judge Yvonne Gonzalez Rogers ruled that Apple was not liable as an antitrust monopolist under Epic’s principal theory, but separately issued an injunction requiring Apple to allow developers to communicate with customers about alternative purchasing methods. The court’s Rule 52 order is available through Justia.
Apple interpreted the order as allowing external links while still seeking compensation for qualifying sales. Epic argued that a large fee and related restrictions undermined the order’s purpose. Those are competing positions; they should not be presented as the same legal conclusion.
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How the 27% model compared with 30%
The framework discussed at Schiller’s 2025 hearing set a 27% commission for qualifying external purchases—three percentage points below the 30% rate commonly associated with Apple’s standard commission. The 27% figure was historical and tied to the U.S. framework under discussion; it was not a universal or permanent Apple rate.
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| Item | What it means |
|---|---|
| 30% | Common historical standard commission in many App Store situations, subject to program, product, subscription and developer exceptions. |
| 27% | Historical external-purchase commission discussed in the February 2025 testimony, three points below 30%. |
| 15% | Rate that can apply in qualifying small-business or subscription circumstances; eligibility and conditions matter. |
Apple’s current App Review Guidelines describe different commission structures and exceptions, so no single percentage should be treated as the global App Store rate: Apple’s guidelines.
Why three percentage points mattered less than it appeared
Consider an illustrative $100 digital purchase completed on a developer’s website. A 27% Apple commission would be $27, leaving $73 before any third-party payment-processing fee, taxes, refunds, fraud losses, customer support or compliance costs. The example is not an Apple invoice; it shows why developers compared the full cost of steering a customer, not merely 27% with 30%.
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Developers could face additional work to identify App Store-originated customers, report sales, manage renewals and refunds, and reconcile transactions. If those costs plus payment processing approached the cost of Apple’s in-app system, the economic incentive to move customers to the web would be reduced.
Schiller raised concerns, then approved the plan
According to the AP account of his testimony, Schiller ultimately approved the external commission in January 2024 as a member of an Apple pricing committee that included CEO Tim Cook and then-CFO Luca Maestri. The sequence matters: it shows internal disagreement about implementation, legal risk and developer relations—not a permanent split between Schiller and Apple.
What counts as an external purchase
An external purchase generally follows this path:
- A customer discovers or opens an app obtained through the App Store.
- The app directs the customer to a developer-controlled website or another outside payment flow.
- The customer buys digital content or functionality outside Apple’s in-app purchase system.
- Under the historical U.S. framework, Apple sought a commission on some qualifying transactions.
This category is different from several other App Store cases:
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- Physical goods and services: Items consumed outside the app generally use payment methods other than in-app purchase.
- Reader apps: Apps for previously purchased books, music, video, magazines or similar content are governed differently from apps selling digital content inside the app.
- Free companion apps: Apple’s guidelines distinguish free apps that accompany paid web-based tools, such as email or cloud storage, from apps selling digital functionality in the app.
- Alternative app marketplaces: Third-party distribution involves separate rules and, in some regions, separate fees.
What changed in the United States in 2025
On May 1, 2025, Apple announced an App Review Guidelines update tied to a U.S. court decision concerning external buttons, links and calls to action. Apple’s current guidelines state that the prohibition on purchase-directed links does not apply to apps on the U.S. storefront: Apple’s announcement and current guidelines.
That is a material change from the restrictive framework discussed in Schiller’s February testimony. It does not, by itself, establish that every U.S. external purchase is fee-free or that every contractual and reporting obligation disappeared. The historical 27% figure should therefore not be reported as Apple’s current universal U.S. charge.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why geography still matters
Apple maintains region-specific systems for external purchases. Depending on the storefront and the app’s eligibility, developers may need an entitlement, country-specific URLs, transaction tokens and recurring reports. Apple documents external-purchase APIs at StoreKit external purchase and describes reporting tokens and transactions at App Store Connect help.
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Apple’s European Union documentation lists a 17% commission for certain iOS and iPadOS arrangements and a 27% rate for certain other platforms under alternative business terms: Apple’s EU fee table. Those figures are EU alternative-business-term figures, not a rule that can be applied to the United States or every other country. Apple also publishes a separate external-purchase-link entitlement for eligible situations: external-purchase-link entitlement documentation.
What developers and users should take away
- Schiller’s objection concerned charging for transactions completed outside Apple’s payment system, not all App Store commissions.
- The 27% rate was a historical U.S. framework discussed in 2025 testimony, not a current global rate.
- Apple’s January 2024 approval followed internal concern about legal exposure, auditing and developer relations.
- The 2021 Epic ruling rejected Epic’s principal monopolization claim while separately imposing an anti-steering injunction.
- U.S. storefront rules changed in May 2025, but regional entitlements, fees and reporting duties still vary.
- A permitted external link is not the same thing as a guarantee that every external transaction carries no Apple fee.
The bottom line
Schiller’s testimony shows that Apple recognized unusual legal, operational and relationship risks in charging for a purchase completed elsewhere. Apple proceeded anyway, then changed its U.S. link policy after later court action. The lasting lesson is not that Apple abandoned commissions; it is that the cost and legality of an external purchase depend on the storefront, app category, agreement and rules in force at the time.
Frequently Asked Questions
Did Phil Schiller oppose Apple’s entire App Store commission model?
No. His testimony concerned commissions on qualifying purchases completed outside Apple’s payment system. It did not establish opposition to Apple’s ordinary in-app purchase commissions.
Is Apple’s external-purchase fee still 27% everywhere?
No. The 27% figure was part of the historical U.S. framework discussed in February 2025 testimony. Current fees and obligations vary by storefront, program, platform and developer eligibility.
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Apple’s current guidelines allow purchase-directed buttons, links and calls to action in the U.S. storefront, but other App Store requirements and any applicable contractual or reporting conditions may still apply.
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