Apple has recently made updates to its App Store policies regarding how developers can link to external payment platforms. This move comes after the Supreme Court’s decision not to hear Apple and Epic’s appeals over the Epic Games v. Apple ruling. In response to these updates, Tim Sweeney, founder and CEO of Epic Games, has expressed dissatisfaction with Apple’s new policies.
Apple’s updated policies, outlined in Section 3.1.1(a) of the App Store Review Guidelines, specify the rules that developers must follow when linking to alternative payment methods. One key requirement is that developers must apply for an “entitlement” to enable these external payment options. Additionally, developers cannot solely rely on outside payment platforms; they are also required to offer Apple’s in-app purchase system within their apps.
Under the updated policies, Apple will continue to receive a percentage of revenue when developers use external payment platforms. However, the cut that Apple takes has been adjusted. Previously, Apple took a 30 percent cut, but now they will take a 27 percent cut in most cases. For developers who are part of the App Store Small Business Program, the cut is further reduced to 12 percent.
Tim Sweeney, in response to Apple’s updates, criticized the 27 percent fee as “anticompetitive.” He also raised concerns about how the links to external payment platforms appear and function. Sweeney highlighted what he referred to as the “scare screen” that users will encounter when leaving an app to visit an external site. In response to these policy changes, Epic Games plans to challenge Apple’s compliance plan in District Court, according to Sweeney.
Apple’s updates to its App Store policies have significant implications for developers who rely on external payment platforms. The reduced fees may be seen as a positive move for developers, particularly those participating in the App Store Small Business Program. However, the requirement to still offer Apple’s in-app purchase system can be seen as restrictive.
It remains to be seen how this dispute between Apple and Epic Games will unfold in District Court. The outcome of this legal battle could have far-reaching implications for the app development industry and the relationship between developers and platform owners.
Apple’s recent updates to its App Store policies aim to regulate the use of external payment platforms by developers. The changes come after the Supreme Court’s decision not to hear Apple and Epic’s appeals, which led to the requirement for Apple to discontinue its anti-steering rules. However, these updates have not been well-received by Tim Sweeney of Epic Games, who plans to contest Apple’s compliance plan in District Court. As the legal battle continues, the future of app development and the relationship between developers and platform owners hangs in the balance.
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