There are more developments today in the ongoing battle between Apple and some of its biggest App Store opponents. First, in a new amicus briefed filed in the United States today, Meta, Microsoft, X, and Match Group have teamed up to oppose Apple’s proposed anti-steering changes in the United States.
Meanwhile, Epic Games shared more details about its plans to launch its own app marketplace for iPhone in the European Union. The company says it will take a 12% commission from sales…
In the United States
As a result of its legal battle with Epic Games in the United States, Apple was forced to relax its anti-steering rules that previously prohibited developers from linking to alternative payment systems in their apps.
As part of its plan, however, Apple said it would still charge a commission on purchases made through alternative payment platforms. This commission is 12% for developers who are members of the App Store Small Business Program and 27% for other apps.
Epic Games has already voiced its opposition to Apple’s implementation of the anti-steering changes, calling for the court to hold Apple in contempt.
In a new amicus brief filed with the court today, Meta, Microsoft, X, and Match Group have also now officially made it known they don’t believe Apple is complying with the order. The Verge explains:
The amici say that Apple’s 12 to 27 percent fee on external purchases defeats the purpose of the new requirement since it’s only a few percentage points below what developers would otherwise be required to pay for in-app purchases. The external purchase fee could make it unrealistic for developers to even set up an external payments system, given that other transaction costs they might incur through that route could eliminate any of the 3 percent gains they’d get from moving away from Apple’s system. Plus, customers are unlikely to choose the external option if it’s the same price or higher.
In the European Union
Meanwhile, across the pond, Epic has revealed a few additional details about its forthcoming Epic Games app store in the European Union. As part of the Game Developers Conference today, the company revealed that it hopes to launch its Epic Games Store for iPhone and Android in the EU by the end of the year.
Epic says the terms for developers will be the same via the Epic Games Store on mobile as they are on the Epic Games Store on PC. As such, the company will take a 12% commission on all sales through the Epic Games Store. The revenue share is 100% for the developer during the first six months on the Epic Games Store.
The Epic Games Store will feature Epic’s own content, including Fortnite, alongside a selection of third-party partners. The company says it will share additional details in the lead-up to the launch later this year.
Finally, we shared more about our plans to bring the Epic Games Store (EGS) to mobile later this year. EGS will become the first ever game-focused, multi-platform store, and will work across Android, iOS, PC, and macOS. Mobile developers will benefit from the same fair terms on EGS for PC: 88/12 revenue share and the same programs you can leverage to keep 100% of revenue using your own payments for in-app purchases, Epic First Run, and Now On Epic.
And more details from an Epic spokesperson:
“The Epic Games Store has a 88/12 revenue split for developers who distribute paid-for apps on PC and Mac and that will continue on mobile platforms. Developers do not pay Epic anything to distribute free apps. If developers offer in-app purchases, they can choose to either use our payment processing system with the 88/12 revenue share or use a third party payment processor and keep 100% of that revenue, just like they do today.”
As part of its changes in the EU for the DMA, Apple announced a reduced commission structure in January. For developers that opt in to the new terms, they will pay 17% plus 3% if the apps are using Apple’s In-App Purchase system. Small business program developers will pay commission of 10%, plus 3%, down from 15%.
There is also the Core Technology Fee, which charges €0.50 per annual install, for apps that are popular enough to shift more than one million units per year. Apple estimates less than 1% of developers will pay the CTF.
Developers in the EU can also choose to stick to the existing App Store terms, where the commission is 30% for big developers or 15% for developers making under $1 million per year.
FTC: We use income earning auto affiliate links. More.
Comments