Phil Schiller revealed that he had concerns over Apple’s fees on purchases made through external websites.
During a court hearing related to the ongoing Apple vs Epic legal battle, Apple executive Phil Schiller shared his concerns about the fees Apple imposes on purchases outside the App Store.
Schiller expressed his reservations about implementing a fee for purchases made via external websites during internal Apple meetings discussing the company’s response to an anti-steering injunction. His concerns were only made public when he testified in court on Monday.
Schiller warned against the potential negative impact on the relationship between Apple and app developers if fees were applied to external purchases. Apple’s commission system for in-app purchases has faced antitrust investigations, with the high-profile lawsuit with Epic Games being a notable example.
Despite Schiller’s concerns, Apple introduced a commission system for external purchases in January 2024, charging a 27% fee for purchases made through alternative means. The decision was made by a pricing committee that included Apple CEO Tim Cook, former CFO Luca Maestri, and Phil Schiller.
Various ways of discouraging external purchases were considered by Apple, including link placement restrictions and warnings about security risks to inform users. Epic Games founder Tim Sweeney commented on Schiller’s testimony, expressing his views on Apple’s fee collection system.
Apple App Store head Phil Schiller is publicly testifying in the Epic v Apple Contempt of Court hearing, and it’s super spicy. An absolute textbook case of malicious compliance, supported by a lengthy paper trail.
And it wasn’t explicitly said, but the testimony had the vibe that February 24, 2025
The legal battle is ongoing, with further hearings scheduled. Carson Oliver, an Apple employee under Phil Schiller, is among those set to testify. The court will determine if Apple violated the existing anti-steering injunction and if it will be held in contempt.