Apple lets devs use alternate in-app payment options, still takes commissions

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A chapter in the ongoing Epic v. Apple court case closed yesterday when the US Supreme Court declined to hear further arguments from either company. This decision leaves the case where it was after the 9th Circuit Court of Appeals ruled on it in April 2023.

The main issue at hand—to summarize days of arguments and multiple lengthy, technical court rulings in a couple of sentences—was whether Apple could continue to collect the 15–30 percent cut that it takes of all App Store purchases on its platforms and in-app purchases and subscriptions bought inside of those apps. The rulings, largely seen as victories for Apple, didn’t open iOS or iPadOS up to third-party app stores or app sideloading as Epic had originally sought. However, the rulings establised that Apple’s so-called “anti-steering” rules—language prohibiting developers from mentioning cheaper or alternative purchasing options that might be available outside of an app—were anticompetitive.

Apple has updated its App Store rules to allow developers to provide external links to other payment options, technically circumventing its normal fee structure. But they come with many extra conditions that developers have to meet. And instead of paying Apple a 15 or 30 percent cut, Apple will collect a 12–27 percent commission instead. After factoring in the fees from whatever non-Apple payment processor these developers decide to use, the revenue they give up will remain essentially unchanged.