Apple Executive Voiced Concerns Over App Store External Payment Fees

Apple Fellow Phil Schiller testified in court Monday that he initially objected to the company's plan to charge a 27% commission on purchases made outside the App Store, court documents showed. Schiller, who oversees the App Store, warned the fee would create an 'antagonistic relationship' with developers and transform Apple into 'some kind of a collection agency' that might need to audit developers for nonpayment.

'I had great concerns about the collections of funds from developers,' Schiller said, worrying about 'how all of those things change the relationship between Apple and developers in a way I thought would be detrimental.' Despite these objections, a pricing committee including CEO Tim Cook ultimately approved the commission structure. The 27% fee resulted from the 2021 Epic Games ruling that required Apple to allow developers to link to external payment options, slightly lower than the standard 30% in-app purchase commission. Internal documents revealed Apple analyzed how a 'less seamless experience' of web-based payments would affect transaction completion rates.

Read more of this story at Slashdot.