Hello to all my tech-savvy followers! Today, we dive into a crucial topic regarding Apple’s notorious App Store commissions.

Phil Schiller, a veteran executive at Apple and the mastermind behind the App Store, shared his insights during a recent court testimony. He expressed his concerns about the 27% commission Apple intended to impose on app developers for purchases made outside of the App Store.

Schiller feared that this fee could foster an adversarial relationship between Apple and the developers, alongside potential compliance risks. He highlighted the possibility of Apple transforming into a ‘collection agency’ for these transactions, which would alter the dynamics of its relationship with developers significantly.

Under normal circumstances, Apple charges a 30% commission on in-app purchases, but this reduced fee of 27% was a response to a ruling favoring Epic Games in 2021. This legal decision mandated that Apple allow developers to link to alternative payment methods.

Despite initially raising his doubts, Schiller, along with a committee including CEO Tim Cook, ultimately decided to enforce this commission on external sales. This change was not just a matter of pricing but also raised issues around operational procedures and developer relationships.

Apple’s internal discussions contemplated various strategies, even considering customer experience when payments were redirected to external sites. Concerns were also voiced about Apple being perceived as ‘charging for what happens on the internet.’

As Apple faces ongoing scrutiny and legal debates about its practices, Schiller’s testimony sheds light on the challenges and considerations that shape the tech giant’s policies.