After a long-term trial with Epic Games, Apple has announced a solution that allows iPhone app developers to use alternative payment systems. However, developers will still be required to pay commissions and adhere to certain conditions.
Apple’s statement comes after the US Supreme Court decided not to consider the appeals of both companies, effectively putting an end to their long-standing dispute. In 2020, Epic Games, the developer of Fortnite, accused Apple of monopoly in the digital services market and attempted to challenge its control over the App Store. The claim raised the issue that Apple charges a commission of up to 30% for all financial transactions in the App Store, utilizing its complete power over its ecosystem.
The San Francisco Federal Court primarily sided with Apple, making only one concession in favor of Epic Games – allowing applications to indicate alternative payment methods outside of the Apple ecosystem.
Apple stated that it will allow developers to include buttons or links that direct users to alternative payment services. However, the company will still retain the right to charge a commission of 27% for transactions made through third-party systems.
The CEO of Epic Games, Tim Sweeney, announced his intention to dispute Apple’s solution, which he considers to be “unknown”. Sweeney emphasized that such a commission jeopardizes price competition.
“Apple introduced a new anti-competitive tax of 27% for purchases on the Internet. Apple has never done this before, and this kills price competition. Developers cannot offer digital goods on the Internet cheaper, having paid a third-party payment service 3-6% and having paid the new Apple tax in the amount of 27%,” said Sweeney.
Apple, on the other hand, explains the need for a commission and the introduction of “rights to use links” for developers as a measure to reduce risks associated with external payment systems. The obtained rights can be revoked if developers fail to adhere to the established rules.
In conclusion, although Apple has taken a step towards giving developers more freedom in choosing payment systems, the retention of commissions and strict rules indicate that the company still intends to maintain control over its ecosystem.