Apple and Epic argue over how much Apple should get from purchases made outside the App Store
In a new filing in its long-running legal dispute with Epic Games, Apple has proposed a structure that would allow it to collect fees on digital purchases made via external links that don't use the company's in-app purchase system. Epic has already responded, saying that Apple's
The ongoing dispute between Apple and Epic Games has significant implications for the app economy, particularly when it comes to in-app purchases and commission fees. Apple's proposal to collect fees on digital purchases made via external links, despite not using the company's in-app purchase system, suggests that the tech giant is trying to maintain its grip on revenue streams. This move is likely an effort to protect its lucrative App Store business model, which has long been a point of contention with developers like Epic.
The context here is crucial: the app economy has grown exponentially in recent years, with in-app purchases and subscriptions becoming a major source of revenue for many developers. Apple's 30% commission on in-app purchases has been a sticking point for some developers, who argue that it's too high and stifles innovation. Epic's pushback against Apple's proposal is likely a bid to assert its own interests and those of other developers, who may be looking for more flexibility and control over their revenue streams.
What's next to watch is how the courts respond to Apple's proposal and Epic's counterarguments. The outcome could have far-reaching implications for the app economy, influencing how companies structure their in-app purchases and revenue models. Additionally, keep an eye on how other players in the app ecosystem, such as Google and Amazon, respond to these developments – they may be watching closely and adjusting their own strategies accordingly.
Originally reported by theverge.com. AppNewsletter adds analysis for ai & agent economy readers.