Several notable tech firms have joined Epic Games, creator of the popular video game ‘Fortnite’, in the legal protest against Apple for its decision to charge a commission fee for payments made outside of the App Store using iOS devices.
Meta, Microsoft, X, and Match Group Sue Apple for Charging Excessive Fees for External Payments
Meta – parent company of Facebook, Instagram, and WhatsApp, Microsoft, Elon Musk’s X, and Tinder and Hinge owner Match Group, have filed an amicus brief in the Epic Games vs Apple case stating that the Silicon Valley giant was in “clear violation” of the court-ordered injunction by making it harder for iOS users to take advantage of cheaper means to pay for digital content.
Those companies develop some of the most popular apps for iOS devices.
Epic Games sued Apple in 2020 claiming the company had violated antitrust law by requiring consumers to download apps only through its App Store and charging developers up to 30% in commissions on every purchase.
Court Injunction Forced Apple to Enable Third-Party Payment Options on iOS
Apple was compelled to allow developers to incorporate in-app payment options through third-party channels. This action was enforced after a ruling by the US District Court of the Northern District of California – where the Epic Games vs Apple lawsuit is taking place – and the enactment of the EU’s Digital Markets Act.
Additionally, the company now has to allow alternative app marketplaces for devices registered in Europe.
The court’s injunction order also requires Apple to let developers add links and buttons within apps that direct their users to alternative payment channels.
However, Apple then said it would charge a 27% commission fee when developers process payments outside of its in-house marketplace, maybe fearing that it was about to lose out on a big chunk of profit.
Earlier this month, Epic Games filed a petition in court asking the judge to make the injunction made against Apple in 2021 permanent.
Developers Complain that Apple’s Excessive Commission Fee is Harmful to Them
In Wednesday’s filing, Meta, X, Microsoft, and Match Group said Apple’s conduct entrenched anti-steering rules that the court had found to be illegal. They also made a point to note the company’s “excessive” commissions were harming both consumers and developers.
The filing states that Apple’s restrictions on “when and how” developers can communicate with users about their options for purchasing in-app content “create significant barriers to competition and artificially inflate prices”.
The petition filed by Meta, X, Match Group, and Microsoft comes a day after the EU’s antitrust chief warned Apple over its new fee policy for developers.
Although the District Court of Northern California found Apple to have not violated federal antitrust laws with its App Store policies, the company still decided to appeal the court’s injunction order against it in the Supreme Court in January. However, the highest court in the US decided not to hear Apple’s appeal and also decided against Epic’s appeal of the lower court’s findings that were in favor of the tech giant.
X, formerly Twitter, said in its filing that the 27% fee doesn’t give developers much incentive to link to external payment methods. Microsoft noted that Apple’s new app policies limit its ability to offer subscriptions and discounts to consumers. Match Group argued that Apple’s decision stymies the court’s attempt to offer consumers competition on pricing.
Meanwhile, Meta is charging more from iOS users for its ad-free plans and boosted posts on Instagram and Facebook than it does on the web. The company stated in the amicus brief that it ought to be able to direct users to other payment options for boosted posts.
Apple claims that its current external link policies are important to protect iOS users’ privacy and security. The tech behemoth has until April 3 to formally respond to Epic’s filing.
Epic Games to Launch Cross-Platform Game Store for iOS and Android Later This Year
Epic Games is preparing to debut its games app store later this year. At the Game Developer Conference, the company said the store would be a cross-platform application between iOS, Android, PC, and macOS. Epic plans to charge the same 12% cut it takes from PC game developers for its mobile game store.
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