Apple Prioritized Revenue for App Fee Change Despite Legal Risk

The impact on Apple Inc.’s bottom line was a key part of its decision to charge developers a 27% fee to steer customers outside the App Store, even if it risked defying a court order, a company executive told a judge.

In 2023, as the iPhone maker was deliberating how to allow payments outside the App Store while maintaining revenue, it considered several options, senior executives said in testimony over the last two days in federal court. One idea was to impose restrictions on links to alternative payments and charge no commission, they said. Also on the table was a 27% commission with fewer limits. The company ultimately chose the commission alongside stringent restrictions.