The US Supreme Court refused to review the verdict in the case of Epic Games and Apple. Now developers can insert links to third-party payment methods into applications
Neither Epic Games nor Apple have been able to challenge the lower court's decision in their multi—year dispute over the App Store monopoly - the U.S. Supreme Court rejected new appeals from both companies without explanation.
Fortnite
A little background
The conflict between Epic Games and Apple broke out in mid-August 2020. Then Epic Games gave users of the mobile version of Fortnite the opportunity to buy content bypassing the App Store payment system. After that, Apple removed the game from the store.
In September 2021, the court rejected most of Epic Games' claims against Apple and concluded that the App Store's policy did not violate antitrust laws. However, he ordered Apple to partially revise the rules of the store: the company must allow developers to insert buttons and links into applications that allow users from the United States to pay for purchases outside the App Store payment system. Both companies tried to appeal the verdict, but in April 2023, the U.S. Court of Appeals upheld it. Now it has actually been approved by the US Supreme Court.
Changes to the App Store Policy
From January 16, 2024, developers can redirect users to pay outside the App Store, but not without nuances.
Developers still have to pay Apple a commission of 27% for each purchase on an external site (or 12% if the developer's annual income is less than $1 million). In fact, the size of the commission has hardly changed. In the App Store, it is 30% and 15%, respectively. When making a purchase, users should have a choice: pay for it using the App Store system or using an alternative method.
Before adding the ability to bypass the App Store payment system to the application, developers need to submit an application to Apple.
Epic Games CEO Tim Sweeney, in a post on X, called the decision of the US Supreme Court a loss for all developers.
Sweeney also criticized Apple's changes to the App Store policy. He pointed out that it is unprofitable for developers to abandon the App Store payment system — in addition to the "anti-competitive" commission of 27%, they also have to pay a commission to owners of third-party payment systems of 3-6%, which is why the commission of the Apple store turns out to be lower. In addition, according to him, Apple has made working with links in applications very inconvenient for users.
A quick summary of glaring problems we've found so far:
1) Apple has introduced an anticompetitive new 27% tax on web purchases. Apple has never done this before, and it kills price competition. Developers can't offer digital items more cheaply on the web after paying a… pic.twitter.com/YkHuapG7xa
— Tim Sweeney (@TimSweeneyEpic) January 16, 2024
Epic Games is going to challenge Apple's "unfair" actions in the district court.
