Epic Games plans to object to Apple tax on web payments as ``ruining court orders''



Apple, which operates the iOS app store App Store, and Epic Games, which develops the popular game ``Fortnite,'' waged a legal battle for more than three years, and in the end, Apple almost won the lawsuit. Meanwhile, Apple was ordered to allow app developers to use external payment systems and updated its App Store guidelines, but Epic Games said, ``Apple's new guidelines make the court ruling useless.'' '', he strongly criticized.

Epic plans to contest Apple's 'bad-faith' compliance with court ruling over App Store | TechCrunch
https://techcrunch.com/2024/01/17/epic-plans-to-contest-apples-bad-faith-compliance-with-court-ruling-over-app-store/

Apple and Epic Games have been fighting in court since 2020 over the App Store's anti-competitive terms. The appellate court's judgment handed down on April 25, 2023 upheld Apple's claims in 9 out of 10 claims, and the Supreme Court further rejected both companies' claims on January 17, 2024. The appellate court judgment has been finalized.

The Federal Supreme Court refuses to hear the Apple vs. Epic Games lawsuit, and although Apple's victory is almost certain, it is necessary to approve ``payment systems outside the App Store'' - GIGAZINE



Although this appellate court ruling is almost certain of Apple's victory, Apple was ordered to allow developers to ``guide the app to a third-party external payment system outside the app.'' Accordingly, Apple is updating its App Store guidelines.

Apple finally allows ``link insertion to external billing system'' in iPhone apps, but fees will be charged - GIGAZINE



Apple will charge a 15% fee for in-app purchases for developers enrolled in the Apple Small Business Program with annual revenue of less than $1 million (approximately 148 million yen), and a 30% fee for developers with annual revenue of more than $1 million. We have set a % commission. Some developers, including Epic Games, said the fee was too high and called it an 'Apple tax.'

Regarding 'third-party external payment systems located outside of the app,' which was newly added to the guidelines, 27% and 12% of developers are enrolled in the Apple Small Business Program or have an auto-renewing subscription for the second year or later. A fee will be charged.

However, Epic Games CEO Tim Sweeney said, ``If you use a third-party payment service, you have to pay a 3% to 6% fee, and if you pay Apple a 27% fee, you can buy digital items cheaper.'' 'We cannot provide that,' he said, adding that there is no benefit to using a third-party external payment system.



App Store guidelines also have strict specifications on how links to external payment systems should be displayed. 'The new guidelines not only require developers to apply for permission, but also require links to be placed in a separate section of the app from the normal payment flow, and require a web browser to be run separately from the app,' Sweeney said. 'This creates a barrier to purchasing outside of the App Store, requiring users to upgrade and log back into a developer-provided website.'

Furthermore, regarding the regulations that require a warning screen to be displayed before accessing external payment systems, CEO Sweeney said, ``In order to be at a disadvantage to competing payment systems, we are putting screens that frighten users to the forefront.'' I insisted.



CEO Sweeney says Apple's 'malicious compliance' undermines the court's decision and plans to object.

Spotify, which like Epic Games is opposed to Apple's fees, said of Apple's new guidelines, ``Apple once again monopolizes the App Store and protects profits made at the expense of developers and consumers.'' Apple's latest move in the US is to impose a 27% fee on external payments made on developer websites, which is outrageous. 'This violates the court's efforts to enable greater competition and user choice.'

At the same time, Spotify argued that Apple's fees to external payment systems fall under the EU's Digital Markets Law. We urge you to take swift and decisive action to prevent its introduction.'

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