Court-Ordered Changes to Apple App Store Allow External Links for In-App Purchases
Apple has recently made changes to its app store policies, allowing software developers to direct users to external websites for in-app purchases, in compliance with a court order. The changes come as a result of a long-standing legal battle between Apple and video game company Epic Games, which had challenged Apple’s fees on in-app purchases. The new policy allows developers to provide links to external sites, but Apple still takes a 27% cut of the sale.
Apple Still Receives a Cut on Purchases Despite External Links, Say Reports
While Apple’s policy change allows developers to direct users to external sites for purchases, the company will still retain a percentage of the sale. This has led to concerns among developers and users who were hoping for a reduction in fees. Despite paying a third-party payment processor fee of 3% to 6%, developers will still have to pay Apple’s 27% fee, making it difficult for them to offer digital items at a cheaper price. Reports suggest that Apple’s move ensures its share of the lucrative in-app purchase market, which is predicted to reach $161 billion by 2026.
Epic Games Plans to Challenge Apple’s New Policy in Federal Court
Epic Games, the video game company that sued Apple in 2020 over its app store fees, has vowed to challenge Apple’s new policy in federal court. The company argues that the changes are a “bad faith” effort to comply with the court order while still maintaining its hold on the market. Epic Games’ CEO, Tim Sweeney, expressed his concerns on social media, stating that developers would not be able to offer digital items at a lower cost on the web after paying the third-party payment processor fee and Apple’s 27% fee.
Epic CEO Claims Apple’s New Policy is a “Bad Faith” Effort to Comply with Court Order
Tim Sweeney, the CEO of Epic Games, strongly believes that Apple’s new policy is a “bad faith” effort to comply with the court order. Sweeney argues that the policy does not allow developers to offer digital items at a cheaper price on the web. He raised concerns about the additional fees developers have to pay, making it challenging for them to compete in the market. Sweeney’s comments highlight the ongoing tensions between Apple and Epic Games and their differing views on fair competition and app store policies.
Apple Retains Stake in Lucrative In-App Purchase Market with Policy Changes
With its policy changes, Apple ensures its stake in the lucrative in-app purchase market. Customers spent a staggering $85 billion on in-app purchases through Apple’s app store in 2021, and this figure is expected to nearly double by 2026. The ability to retain a percentage of the sale through external links allows Apple to continue profiting from the growing market. The company’s legal battle with Epic Games has also led to Apple filing a demand for Epic Games to pay $73.4 million in legal fees. This demonstrates Apple’s commitment to defending its policies and recouping its legal expenses.
Analyst comment
Positive news: Court-ordered changes allow external links for in-app purchases.
Analyst: The market will see increased competition as developers can now direct users to external websites. However, Apple’s 27% cut may limit developers’ ability to offer cheaper prices. Apple will retain its stake in the lucrative in-app purchase market, ensuring continued profits. Epic Games plans to challenge the new policy in federal court, indicating ongoing tensions between Apple and developers.
