Apple charges a fee of 30 percent of the price for all purchases from the App Store. This also applies to subscriptions and in-app purchases. This is too much for many developers – but they are not yet allowed to offer any payment options as a direct alternative.
In the legal dispute with Epic Games, a US appeals court agreed with Apple on 9 out of 10 counts. However, the company now has to improve on one point. This affects the payment options in Apple’s App Store.
Payment so far only possible via Apple’s App Store
According to the decision, the US technology giant may continue to charge a sales commission of up to 30 percent in its AppStore but must allow links to external payment options. In a dispute with game developer Epic Games, a US appeals court on Monday upheld a 2021 order that Apple cannot prevent app developers from including links in their applications that allow users to make payments outside Apple’s own home. Enable in-app purchase systems for content and subscriptions. At the same time, the judge upheld the decision that Apple’s App Store rules do not violate antitrust laws. She allowed commissions of up to 30 percent for in-app payments.
Also interesting: competition for Google Play Store? That’s what alternative app stores bring
App store alternatives are coming with iOS 17
Apple sometimes charges high commissions to game developers who offer their products through the company’s own app store. The sales commissions to the iPhone manufacturer can be avoided via the links to external payment functions. Apple announced that it would appeal the decision on payment practices.
Regardless of how the litigation develops, Apple must comply with the EU Digital Markets Act, which will come into full force from early May. As a result, Apple must allow users in the EU to download and install apps from alternative sources. So far, this “sideloading” practice has only been possible with the competitor Android, while iPhone owners can only obtain apps from the App Store. Apple is expected to bring this feature to the iPhone with the release of iOS 17 in fall 2023. With the installation of apps from sources other than the App Store, users can then use other options than Apple’s system for payments.
With material from Reuters