The US Supreme Court’s Decision on Apple vs. Epic Games: Implications for App Developers and Payment Systems

2024-01-19 13:33:10

The US Supreme Court put an end to the litigation between Apple and Epic Games, which began in 2020, after the authority is no longer willing to listen to either side.

Apple’s system has long been criticized for the giant’s refusal to inform users of alternative payment options that could save them money. So far, Apple has not allowed third parties – such as Epic – to make it possible to purchase their applications in their own store. Moreover, Tim Cook his company, in addition to making it possible to buy apps exclusively in the App Store, also asked third parties for a 27% commission for each purchase.

The decision of the Supreme Court overturned this system to some extent, but it did not completely solve Epic’s problem. The court agreed that developers like Epic Games should be allowed to provide links to external payment systems in their applications, but Apple should still pay a share.

Apple makes it difficult for developers

Although developers can now educate their users about alternative payment methods, Apple has decided to introduce a series of new restrictions that could deter companies from leaving Apple’s payments ecosystem. In addition, the giant company also demands access to the accounting records of the partners, thus making sure that the commissions have really been paid.

And while Apple is complying with the terms imposed by the court, it is new measures they definitely indicate that the company is acting aggressively against third-party developers. For one thing, developers will now have to go through Apple’s approval process when using external links for payments. On the other hand, information or links to external payment options are not allowed in the App Store. Additionally, companies cannot dissuade users from making purchases in the App Store, and must regularly report out-of-app purchases, which are subject to Apple’s control, to ensure commissions are paid. By the way, the commission rate for smaller developers is 12%, while for larger ones it is 27%.

Apple has therefore clearly designed the new conditions to make it more difficult for developers to use external payment methods, thereby ensuring that the majority of transactions continue to take place through its own system.

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#legal #battle #Apple #Epic #Games

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