Apple’s response to the requirement to allow developers to use payment options outside of its in-house system has sparked negative reactions from the tech community. The company’s stance has raised concerns as it appears to offer little while demanding a significant portion of developer revenue.
Key Takeaway
Apple’s new policy allows developers to use external payment options, but the 27% fee on certain transactions has raised concerns and criticism within the tech community.
Apple and Epic Games Appeal
Both Apple and Epic Games have appealed a lower-court ruling that mostly favored Apple but mandated the tech giant to enable developers to direct their users to the web for payments instead of confining them within the App Store. With the Supreme Court declining to intervene, the previous ruling stands, compelling Apple to facilitate developers in charging users outside of its existing systems.
Apple’s Unyielding Position
Despite the ruling, Apple’s concessions are minimal. The company still insists on a 27% cut on proceeds from sales to users for digital goods or services on developers’ websites, provided the sale was initiated within seven days and the purchased items can be used in an app. This means that even if a user makes a purchase outside of Apple’s ecosystem but uses it within an app, Apple expects to receive 27% of the transaction within a week.
The 27% fee represents a mere 3% reduction from Apple’s existing 30% charge on in-app payments. Essentially, Apple seems to be complying with the requirement while attaching enough costs to make it financially unfavorable for developers. Eric Seufert of Heracles Capital aptly described Apple’s stance as “heads I win, tails you lose,” capturing the essence of the situation.
