April 26, 2023, 3:51 pm | Read time: 2 minutes
Apple charges a fee of 30 percent of the price for all purchases in the App Store. This also applies to subscriptions and in-app purchases. Many developers find this too high–however, they are currently not allowed to offer payment options as a direct alternative.
In the legal battle with Epic Games, a U.S. appeals court sided with Apple on 9 out of 10 points. However, the company must make improvements on one point. This concerns the payment options in Apple’s App Store.
Payment previously only possible through Apple’s App Store
Although the U.S. tech giant is still allowed to collect a sales commission of up to 30 percent in its App Store, it must allow links to external payment options. In the dispute with game developer Epic Games, a U.S. appeals court on Monday upheld a 2021 order stating that Apple cannot prevent app developers from including links in their applications that enable users to make payments outside of Apple’s in-app purchase system for content and subscriptions. At the same time, the judge confirmed the decision that Apple’s App Store rules do not violate antitrust law. She allowed commissions of up to 30 percent for in-app payments.
Also of interest: Competition for Google Play Store? What alternative app stores offer
App Store alternatives coming with iOS 17
Apple charges game developers who offer their products through the company’s App Store high commissions in some cases. Through links to external payment functions, sales commissions to the iPhone manufacturer can be avoided. Apple announced it would appeal the decision on payment practices.
Regardless of how the legal dispute develops, Apple must comply with the EU Digital Markets Act, which comes fully into force at the beginning of May. Accordingly, Apple must allow users in the EU to download and install apps from alternative sources. This “sideloading” practice is currently only possible with competitor Android, while iPhone owners can only obtain apps from the App Store. It is expected that Apple will bring this feature to the iPhone with the release of iOS 17 in fall 2023. By installing apps from sources other than the App Store, users can then also use payment methods other than Apple’s system.
With material from Reuters