Alexander Lewis 
May 12, 2024
Earlier this year, Apple introduced a method for app developers to utilise external payment options rather than conducting all transactions through its App Store. However, only 38 developers have enrolled to use this option so far.
According to testimony presented to a federal judge, no major app developers have signed up to use outside payment options because the fees they would pay are comparable to the fees they pay through the App Store.
During the multi-day hearing addressing a complaint by Epic Games that Apple is not adhering to the terms of a 2021 court order, US District Judge Yvonne Gonzalez Rogers expressed skepticism about Apple's motives, stating that it "sounds to me as if the goal was to then maintain the business model and revenue you had in the past."
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Of the 65,000 app developers that offer in-app purchases on the iPhone, only 38 have applied to include outside links for payments. Apple would charge these developers a 27% fee to use their links, which is lower than the traditional 30% it charges developers.
However, when coupled with credit card fees, many developers would ultimately be paying more by using an outside link rather than conducting the transaction through the App Store.
The judge appeared skeptical that Apple was acting in good faith with this payment setup, which was reportedly approved by a committee that includes CEO Tim Cook. She stated, "I'm looking for data and it sounds like you all made lots of decisions without data."
The hearing will next week proceed and may have an effect on the future handling of in-app purchases made through external links. This is happening as Microsoft prepares to introduce a web store for its mobile games in the upcoming summer.
