Anger over app store fees
Tech giants are taking action together against Apple
March 21, 2024, 7:31 a.m
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A dispute has been simmering between “Fortnite” developer Epic and Apple over fees in the iPhone manufacturer’s App Store for years. Everything is actually regulated by the courts, but does Apple stick to it? Other tech giants are now increasing the pressure.
Epic Games receives support from Meta, Microsoft, X and Match in its dispute with Apple over payment methods in the App Store. According to court documents, they joined a complaint from the “Fortnite” maker that the iPhone maker was failing to comply with a September 2021 court order not to charge fees for payments outside the App Store. It was a “clear violation” of the requirements, according to the documents filed with the responsible court in California.
The order requires Apple to provide developers with other payment options. The group referred to a statement from January 16th, according to which all requirements had been implemented. At that point, Apple had allowed developers to offer purchases outside of the App Store, for a 27 percent fee. Apple typically charges a fee of up to 30 percent for App Store purchases, which app developers say is too high. The company has until April 3 to formally respond to Epic’s complaint.
The trigger for the long dispute was an attempt by Epic to use a trick in 2020 to avoid the percentage levy on the purchase price that Apple withholds from transactions in its App Store. A version of the application with hidden software code was passed on to the company’s app reviewers, which allowed users to buy virtual items even through Apple. Apple kicked “Fortnite” from the App Store because of the rule violation. Epic, on the other hand, went to court in the USA, but lost in all instances.
Apple recently felt entitled to exclude the developer company from the platform following previous rule violations by Epic. A Swedish developer account from Epic was initially excluded, but then allowed again a few days ago. The iPhone company announced that Epic had promised in discussions to follow the platform’s rules including the implementation of the DMA digital law.