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You're forgiven for not keeping up with this but you may recall that Epic Games sued Apple (and Google), claiming that their App Store embraced unfair practices. There's a lot to read about but, essentially, Epic CEO Tim Sweeney does not want to pay Apple 30% on every transaction made within an iOS app, claiming that 8% is more the market rate. It's been a long back and forth with neither side really winning (don't forget that Epic also bought Bandcamp as a weapon in this fight to help prove these unfair practices).
Yesterday, the Supreme Court declined to hear the case. This means that Apple now has to comply with the ruling that they must allow some form of transactions to occur outside of Apple. This seems like a win for Epic until you dig into the exact details of what Apple requires to send someone to a third party transactor.
I can't summarize the list easily nor repost all of the bullets because there are so many of them. Essentially, Apple has made it unbelievably laborious for businesses, developers and consumers to engage with this option; obfuscating it into oblivion. And on top of all that, they're still insisting on a 27% revenue share, even when the transaction is happening outside their system.
I've often sided with Apple on this issue but it doesn't come easily. 30% is extremely steep... but the App Store does provide a great level of security and confidence for consumers. The also have a Small Business Program that lowers the 30% to 15% if you're making under a million dollars a year. I actually admire Sweeney for using his leverage to try and bring light to the issue but I don't think this is an outcome that benefits anyone. I'll even go as far as to say I don't think it's over yet. Surely this list of rules from Apple is not in the spirit of what the judge was expecting? Might we hear more on this issue? My popcorn is ready.
Yesterday, the Supreme Court declined to hear the case. This means that Apple now has to comply with the ruling that they must allow some form of transactions to occur outside of Apple. This seems like a win for Epic until you dig into the exact details of what Apple requires to send someone to a third party transactor.
I can't summarize the list easily nor repost all of the bullets because there are so many of them. Essentially, Apple has made it unbelievably laborious for businesses, developers and consumers to engage with this option; obfuscating it into oblivion. And on top of all that, they're still insisting on a 27% revenue share, even when the transaction is happening outside their system.
I've often sided with Apple on this issue but it doesn't come easily. 30% is extremely steep... but the App Store does provide a great level of security and confidence for consumers. The also have a Small Business Program that lowers the 30% to 15% if you're making under a million dollars a year. I actually admire Sweeney for using his leverage to try and bring light to the issue but I don't think this is an outcome that benefits anyone. I'll even go as far as to say I don't think it's over yet. Surely this list of rules from Apple is not in the spirit of what the judge was expecting? Might we hear more on this issue? My popcorn is ready.
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