The corporation opens the door to alternative payment systems, but holds the keys in its own hands.
After a multi-year legal battle with Epic Games, Apple has announced its decision to allow iPhone app developers to use alternative payment systems, but they will still be required to pay fees and comply with a number of conditions.
Apple's statement came after the US Supreme Court decided not to hear appeals from both companies, effectively ending a long-running dispute. In 2020, Epic Games, the developer of Fortnite, accused Apple of having a monopoly on the digital services market and tried to break its control over the App Store. The lawsuit raised the issue that Apple, using full power over its ecosystem, charges a commission of up to 30% on all financial transactions in the App Store.
The San Francisco Federal court mostly sided with Apple, making only one concession in favor of Epic – allowing apps to specify other payment methods for services outside the Apple ecosystem.
Apple has said it will allow developers to include buttons or links in apps that direct users to alternative payment services. However, the company will retain the right to charge a commission of 27% on transactions made through third-party systems.
Critical CEO of Epic Games Tim Sweeney announced his intention to challenge Apple's decision, which he considers "unfair". Sweeney stressed that such a commission jeopardizes price competition.
"Apple has introduced a new anti-competitive tax of 27% on online purchases. Apple has never done this before, and it kills price competition. Developers can't offer digital goods online for less by paying a third-party payment service 3-6% and paying the new Apple tax of 27%," Sweeney said.
Apple, in turn, explains the need for a commission and the introduction of "rights to use links" for developers, as a measure to reduce the risks associated with external payment systems. These rights can be revoked if the developers do not follow the established rules.
Thus, although Apple has made a step towards developers, giving them more freedom in choosing payment systems, maintaining commission and strict rules indicate that the company still intends to maintain control over its ecosystem.
After a multi-year legal battle with Epic Games, Apple has announced its decision to allow iPhone app developers to use alternative payment systems, but they will still be required to pay fees and comply with a number of conditions.
Apple's statement came after the US Supreme Court decided not to hear appeals from both companies, effectively ending a long-running dispute. In 2020, Epic Games, the developer of Fortnite, accused Apple of having a monopoly on the digital services market and tried to break its control over the App Store. The lawsuit raised the issue that Apple, using full power over its ecosystem, charges a commission of up to 30% on all financial transactions in the App Store.
The San Francisco Federal court mostly sided with Apple, making only one concession in favor of Epic – allowing apps to specify other payment methods for services outside the Apple ecosystem.
Apple has said it will allow developers to include buttons or links in apps that direct users to alternative payment services. However, the company will retain the right to charge a commission of 27% on transactions made through third-party systems.
Critical CEO of Epic Games Tim Sweeney announced his intention to challenge Apple's decision, which he considers "unfair". Sweeney stressed that such a commission jeopardizes price competition.
"Apple has introduced a new anti-competitive tax of 27% on online purchases. Apple has never done this before, and it kills price competition. Developers can't offer digital goods online for less by paying a third-party payment service 3-6% and paying the new Apple tax of 27%," Sweeney said.
Apple, in turn, explains the need for a commission and the introduction of "rights to use links" for developers, as a measure to reduce the risks associated with external payment systems. These rights can be revoked if the developers do not follow the established rules.
Thus, although Apple has made a step towards developers, giving them more freedom in choosing payment systems, maintaining commission and strict rules indicate that the company still intends to maintain control over its ecosystem.
