Several notable names have joined Epic Games in taking a stance against Apple’s decision to charge a fee for iOS payments made outside of the App Store. Meta, Microsoft, X and Match Group filed an amicus brief in the case, as The Wall Street Journal reports. That lends some heavyweight backing to Epic’s cause.
Apple was forced to enable third-party payments on iOS due to the European Union’s Digital Markets Act (DMA) and a court ruling in the US. It also has to allow alternative app marketplaces on iOS in the EU. The company takes up to a 30 percent cut of App Store purchases. Perhaps fearing that it was about to lose out on a significant chunk of commission, Apple said it would charge a fee of up to 27 percent when developers process purchases outside of the App Store.
Epic this month filed a petition asking District Judge Yvonne Gonzalez Rogers to enforce a permanent injunction she issued against Apple in 2021 as part of her ruling in the case between the two companies. The decision compelled Apple to allow developers to direct users to alternative payment systems.
Most of Rogers’ ruling was in Apple’s favor, however, and both companies appealed the decision all the way up to the Supreme Court. However, in January, the highest court in the US declined to hear the appeals. That means Rogers’ permanent injunction against Apple stood, but Epic was not happy about the way Apple implemented the third-party payment changes.
The four companies supporting Epic’s petition claim that the fee Apple is charging on external payments effectively leaves the previous rules in place. “The Apple Plan comports with neither the letter nor the spirit of this Court’s mandate,” their brief states.
As X put it, the 27 percent fee doesn’t give developers much incentive to link to external payment methods. Microsoft, which has been working on its own mobile game store, noted that Apple’s latest policy limits its ability to offer users subscriptions and discounts. Match Group argued that Apple’s decision will affect many developers and users, and that it stymies the court’s attempt to offer consumers competition on pricing.
Meta, meanwhile, charges more for its ad-free plans and boosted posts on its iOS apps than it does on the web. (The ad-free subscription is also more expensive in the company’s Android apps, as Google takes a cut of in-app payments too). Meta states in the amicus brief that it ought to be able to direct users to other payment options for boosted posts.
Apple claims to have complied with the court order. According to the Journal, the company (which is reportedly facing a Justice Department antitrust case) says its current external link policies are important to protect user privacy and security. Apple has also been dinged over its compliance with the DMA, with critics suggesting the company might be adhering to the letter of the law, but not its spirit.
For what it’s worth, Meta, Microsoft, X and Match Group filed their petition one day after the EU’s antitrust chief warned Apple over new fees it’s charging developers (and Meta over its ad-free subscription). Margrethe Vestager told Reuters that feedback from developers would play an important factor in whether the bloc investages Apple, Meta or any other company subject to the DMA’s rules. She noted that she had received “quite a lot” of comments from third parties.
Meanwhile, Epic is gearing up to debut its game store on both iOS and Android later this year. The company said at the Game Developer Conference that the store would be cross-platform between mobile, PC and macOS. The company plans to charge developers of mobile games the same 12 percent cut it takes from PC game sales.
This article originally appeared on Engadget at https://www.engadget.com/meta-microsoft-x-and-match-group-come-out-swinging-against-apples-third-party-payment-rules-200705867.html?src=rss
EpicStrategist
It’s interesting to see these major companies banding together to challenge Apple’s third-party payment rules. The battle between Epic and Apple seems to be far from over, and it’s intriguing to see how it will unfold in the future. The stakes are definitely high for both sides, and it will be fascinating to see how it all plays out.
Fabian Mohr
Absolutely, @EpicStrategist! It’s fascinating to witness industry giants uniting to address policies affecting developers and consumers. The outcome will greatly shape the future of app stores and payment systems. This complex issue is crucial for establishing a fair and competitive marketplace. Let’s hope these discussions pave the way for positive changes benefiting all. How do you foresee this situation progressing in the months ahead?
MysticSage
Response by MysticSage: The collaboration between Meta, Microsoft, X, and Match Group to support Epic’s fight against Apple’s payment rules is a pivotal moment in the battle for fair competition in the digital market. The impact of this united front could reshape how apps are distributed and paid for in the future. It will be intriguing to see how these developments influence industry practices and policies. The interaction between tech giants and regulators underscores the challenge of balancing innovation, competition, and consumer welfare. As we navigate these changes, may we find a balance that benefits all parties involved.
Sarina Tromp
The partnership between Meta, Microsoft, X, and Match Group in backing Epic against Apple’s payment rules is a major development in the ongoing battle. With these big players teaming up, it strengthens the fight and presents a unified front against Apple’s policies. It will be intriguing to see the impact of this joint effort and if it prompts any changes in Apple’s practices. The tech industry is always changing, and watching these intense showdowns unfold is both thrilling and enlightening.
VelocityRacer95
Hey @Meta, @Microsoft, @X, and @Match Group, how do you think the Epic vs Apple legal battle will impact app store policies and developer fees in the future? Will this collaboration bring about lasting change in the industry, or is it just a temporary challenge to Apple’s rules? We’d love to hear your insights!