Updated January 18th, 2024 at 14:12 IST
Apple changes App Store Policy, to charge 27% commission for third-party payments
The decision comes after its long-standing battle with Epic Games for payments on Fortnite.
American technology giant Apple has tweaked its App Store policy to allow third-party payments on the platform, but will be charging a commission.
In a legal filing, the California-based company introduced a 27 per cent commission as part of the rule changes for app marketplace.
The move has not gone down well with developers, and is a result of Apple’s legal battle with Epic Games since 2020.
“As of January 16, 2024, Apple has fully complied with the Injunction: It is striking the relevant parts of the App Store Review Guidelines applicable to apps on the US storefronts of the iOS and iPadOS App Stores and implementing new rules that permit developers to (i) include in their apps buttons or links with calls to action that direct customers to purchasing mechanisms in addition to IAP and (ii) communicate with customers through points of contact obtained voluntarily from customers through account registration within the app,” the legal filing read.
Apple has been accused of anti-competitive practices for all in-app purchases through its own payment system, charging a 30 per cent commission for access to its App marketplace, which is used by millions of iPhone and iOS users.
Epic Games subsequently launched its own in-app payment system for popular battle game Fortnite in a bid to circumvent the commission, which resulted in Apple delisting the game from the App Store.
The third-party allowance also comes with a disclaimer by Apple that users are about to go to an external website, and it takes no responsibility for the privacy and security of users.
As part of the new ruling, Apple will allow app makers to add links and buttons inside the app, and users will be subsequently taken to an external website to add payment details.
Earlier, it was prohibited by the App Store. The companies will also have to offer Apple’s billing system as an option, instead of replacing, as per the new rules.
“The court battle to open iOS to competing stores and payments is lost in the United States,” Epic Games CEO Tim Sweeney said after the announcement, terming it “a sad outcome for all developers.”
Published January 18th, 2024 at 14:12 IST