Apple Says Its 27% Fee On Purchases Done Outside The App Store Are In Good Faith

A top of the line executive from Apple has raised eyebrows when asked to justify the company’s decision to charge a 27% fee for any purchases done outside its App Store.

The senior executive named Philip Schiller explained on Friday at hearing how all such attempts were done in good faith so that the iPhone maker could better comply with existing laws.

As per Apple’s statements, the company is only doing what the law requires, and only with such compliance can it expect to move forward in the best manner.

Apple is being investigated on whether or not it had the right to charge developers such a staggering amount when they had options other than the App Store to make payments. Many felt it was just wrong and unfair as it deterred them from moving externally as the only way out was to pay the fee or stick to the iOS ecosystem.

There was a similar discussion on whether or not Cupertino had any right to fee developers who were using the App Store and its in-built payment systems.

This recent incident of Schiller testifying on Apple’s behalf really is proof of how Apple feels on the matter as the executive is one of the three who proposed the change. Another point that Apple has been forced to embark upon in the past is the addition of links from developers where they could find cheaper payment options online.

The testament lasted for a good 90 minutes and the Apple executive took the stand to explain more about the fee that was rolled out at the start of January this year. He similarly spoke about how Apple has never opposed adding links for cheaper payment options but it just felt that it might detract the users from having a great experience.

Apple says the world keeps changing as we speak and it’s only smart to have some great solutions. While he does not have options against link-out, he just hopes people understand that Apple is more focused on making it a safe and secure environment for all to function in.

But right before that, another incident arose in the hearing where another leading executive from Apple was forced to justify a company-commissioned research regarding the offering of a solution that is safe for all.

Apple was said to have commissioned the top consulting company Analysis Group to design the latest commission linked to purchases done online. And in that, it was found that half the amount was decided as a suitable fee which is 12.3%.

Why was Apple charging another 15% extra when the right figure was already decided upon? Clearly, not a lot of justification from Apple’s end could be done rightly here.

Today, the iPhone maker gives rise to a series of services like app discovery, developer tools, and other kinds of platform technology. This combined with privacy, safety, and trust is said to be some of the tech giant’s strengths that are rarely found elsewhere, the company’s executive added.
The more Apple spoke, the less it was found to be convincing that the 27% service fee was the right figure to charge developers who wished to go outside the App Store. The judge did feel the company was relying on too many poor assumptions and just like that, the testimony continued.

Clearly, this is not an easy case for Apple and one that requires a lot of explanation.

Image: AI-gen

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