Why Apple would rather go to the Supreme Court than drop its App Store fee below 27% - Silicon Canals

"Apple's App Store generates an estimated $85-90 billion in annual gross billings. At a 30% commission, that's roughly $25-27 billion in revenue from a business line with margins above 75%."

"Rather than open the gates to meaningful competition, the company set the external payment commission at 27% - a reduction from its standard 30% fee. The math here is worth pausing on."

"The dispute traces back to when Epic Games added external payment options to Fortnite to bypass Apple's standard App Store commission. Apple largely won the initial case - the court ruled Apple was not a monopoly."

Apple's App Store generates $85-90 billion annually, with a 30% commission yielding $25-27 billion in revenue. A reduction to 20% could cost Apple $8-9 billion yearly. The dispute began when Epic Games added external payment options to Fortnite, leading to a court ruling that Apple was not a monopoly but required to allow external payments. Apple set the external payment commission at 27%, effectively minimizing competition. The U.S. District Court found Apple in contempt, and the Ninth Circuit upheld this ruling.

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