With the US High Court refusing to retrial the Epic Games v. Apple case this week, the case surrounding the ban on third-party payment channels in the Apple App Store has come to an end, and technology giants have also updated their guidelines for the US App Store this week.
After reading Apple's latest guidelines, developers tearfully expressed: Indeed, Apple still knows how to play!
Based on court rulings, Apple has allowed developers to provide third-party payment options in the latest guidelines, but the relevant connections can only be displayed once in the app and must be placed in a single dedicated location. After clicking the link, an Apple specific redirect page will pop up. Click "Continue" to enter the third-party payment link.
(Source: Apple App Store Rules)
The most crucial thing is that Epic Games sued Apple at the risk of being taken down from "Fortnite" in order to avoid paying in app commissions to Apple by allowing third-party payments, which is commonly known as "Apple tax.".
In Apple's latest App Store guidelines, it is explicitly stated that even if third-party payments are used, commissions still need to be paid. The proportion of developers who join the small business plan is 12%, while other developers draw 27%, which means it is only 3% less than direct payment within the application.
(Source: Apple App Store Rules)
It is worth mentioning that Apple's approach is consistent with their previous actions after losing similar lawsuits in South Korea and the Netherlands.
Epic Games is exploding!
Faced with Apple's updated App Store rules, Epic Games CEO Tim Sweeney has posted extensively on social media, criticizing Apple's move as "malicious compliance with court rulings," and they will challenge the court.
(Source: X)
Spotify, a publicly traded audio streaming company that also holds an "anti Apple tax" stance, has publicly criticized Apple for once again stating that they will spare no effort to protect the profits squeezed from developers and consumers under the monopoly of the app store. Spotify emphasized that Apple's move is shocking and openly goes against the court's efforts to promote greater competition and user choice.
It is worth mentioning that as the outcome of this case does not seem to be a complete victory for Epic Games, Apple is requesting Epic Games to compensate them for the $73 million in legal fees spent accompanying them in the lawsuit.
Legal professionals: Apple is doing this Maybe it's really possible
Denver Holland& According to Paul Swanson, an antitrust lawyer at Hart Law Firm, on the surface, Apple's changes meet the requirements of the court ruling. Apple is taking the minimum changes they believe can be made by court order.
Another key figure in this case, presiding judge Yvonne Gonzalez Rogers, has previously stated that she will observe how Apple fulfills its judgment before deciding whether to modify the judgment.
Swanson stated that if the judge determines that Apple has not corrected their unfair behavior, she still has the power to further explain and interpret the judgment.
Herb Hovenkamp, an antitrust professor at the University of Pennsylvania Law School, also believes that taking action against Apple again by Epic Games would be a daunting task, as the court had previously ruled that Apple lacked market power.
But this matter is not completely without a turning point. Hovenkamp stated that Apple's use of the App Store as a bottleneck to "lock in" sales, rather than maintaining openness and competition, will eventually be brought to judicial proceedings for adjudication.
It is reported that the US Department of Justice has been investigating Apple's business practices since 2019 and may file antitrust lawsuits in the near future. In addition, the EU's Digital Markets Act will come into effect in March this year, requiring Apple to allow users to install apps from third-party channels. Currently, developers are waiting to see what measures Apple will take to prevent a large number of unapproved apps from flooding into the iOS ecosystem.
Apple itself does not disclose how much commission it has drawn through the app store, but the outside world unanimously expects it to be a huge sum of money. According to mobile data analytics company data.ai, global consumers paid a total of $171 billion in funds within the App Store in 2023.