Apple Researcher Phil SchillerThe executive who heads the App Store testified in court on Monday that he initially raised concerns about the 27% committee of any purchases that iPhone Maker plans to make outside the App Store. In addition to becoming a potential compliance risk, he suggested that the fee would create a “confrontational relationship” between Apple and its developers and it appears that Apple has the right to have audits to check if they owe Apple Money to deals that occur outside. App Store.
Apple typically charges a 30% commission on in-app purchases, but the reduced fee is 27%, the result of an epic game admission ruling. In 2021, the court ruled that Technology giants are not monopolistsit will have to stop blocking app developers from linking to other ways to get customers beyond Apple’s own in-app purchases (IAP).
Apple technically changes its App Store Guide to allow developers to comply with the ruling Link to their website From their iOS and iPados apps, provide customers with another payment method.
However, Apple cut its commission by 3% in only these purchases.
At the time, CEO of Fortnite Maker Epic Games Tim Sweeney calls for AppleThe tech company has undermined the 2021 order of U.S. District Court Judge Yvonne Gonzalez Rogers, which grants developers aside from Apple’s IAP, to add buttons or links. Right to other purchasing mechanisms.
Apple and Epic Games have Since returning to federal court So Rogers can determine if PPLE violated her original order, forcing the App Store to open up more competition.
According to Schiller’s testimony, he initially opposed the commissions for these external purchases.
He said: “…I’m very concerned about the funding collection of developers, especially “the role of the app store is changing to organizations that now need to collect funds from developers.” ”
He said he was concerned about how the App Store would follow developers who didn’t pay commissions to make it “a sort of payment agency” that has “rules on how we handle non-payments and whether it ultimately means we’ll need to be on the The developer conducts the review.”
Schiller said he was worried about “how all these things can change the relationship between Apple and developers in ways I think are harmful.”
The hearing uncovered Apple’s extensive process while debating the advantages of still charging fees. With many documents and emails, the lawyer detailed the round trip inside Apple as executives weighed different options in compliance with court orders.
Despite initial concerns about Schiller’s proposal, it was a pricing committee that included Apple CEO Tim Cook, The previous one CFO Luca Maestri and Apple’s legal team, together with Schiller, decided to charge developers for these external purchases.
The company also believes that the same 3% fee will apply among developers in its small business plan, reducing commissions of 15% to 12% on its already reduced App Store transactions.
Documents mentioned in court show that Apple analyzed the financial impact of developers who chose to link to their own website.
For example, in one model, Apple is committed to determining how a “seamless experience” using a non-IAP approach leads to customers abandoning transactions. By modeling the location of this critical point, Apple is able to determine when the link will stop for developers’ advantages, which will make them return to using IAP.
Apple also found that stricter rules around the placement and formatting of the link itself could reduce the number of applications that decide to implement these external links. The company looked at the financial implications of excluding other partners in the new program, such as other partners in video and news shows.
The company also weighs the different options for when to charge commissions. Once, it believes that the external purchases made within 72 hours of clicking the link are 27%. when The new guidelines are online. However, that time range has been extended to 7 days.
The lawyer suggested that Cook himself participate in the warnings to App Store clients and recommended that the text that appears when clicking an external link is updated. In one version, the link warns customers that they “no longer trade with Apple.” Later, the link was updated to subtly suggest that purchases on the web could have privacy or security risks.
In another meeting of the committee, people also expressed concerns about Apple’s charges for online transactions.
“It could be like we’re trying to charge for what’s going on on the internet,” one notes from the meeting said.
