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App StoreAppleiOSTech

Apple opens door to alternative payments after legal pressure

But Apple will still take a cut.

By
Shubham Sawarkar
Shubham Sawarkar's avatar
ByShubham Sawarkar
Editor-in-Chief
I’m a tech enthusiast who loves exploring gadgets, trends, and innovations. With certifications in CISCO Routing & Switching and Windows Server Administration, I bring a sharp...
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Jan 17, 2024, 11:33 AM EST
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Apple opens door to alternative payments after legal pressure
Illustration / Dribbble
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Bowing to legal rulings, Apple announced this week it will allow app developers to include links and buttons guiding users to third-party payment platforms. However, the tech giant will still claim commissions on any in-app transactions, even if they don’t actually pass through Apple’s payment system.

The policy change comes after the Supreme Court declined to hear Apple’s appeal in its legal battle with Epic Games, maker of the popular game Fortnite. Lower courts found that Apple’s prohibition on developers informing users of alternative payment methods violated antitrust law.

Under the new rules (look for section 3.1.1(a)), developers must apply to Apple for an “entitlement” permitting external payment links and must continue offering Apple’s in-app purchase system as an option. Transactions processed outside Apple’s ecosystem will still be subject to Apple’s commission, which will be 27% for most developers.

Epic CEO Tim Sweeney blasted the changes as an “anticompetitive” scheme designed to maintain Apple’s monopoly power. Epic intends to challenge the new policies in court as noncompliant with the spirit of the earlier legal rulings.

The policy shift is Apple’s first real concession in its battle to control the iOS app ecosystem and associated revenues. However, with commissions still in place on external transactions, it remains to be seen whether the App Store’s iron grip has actually loosened. One thing is clear though – this matter is far from settled. Apple can expect more legal and regulatory challenges ahead.


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