Apple Abandons 30% Fee on External Links

In the ongoing legal battle known as Epic vs Apple, a significant development has emerged that could reshape the landscape of in-app purchases. Apple, the tech giant behind iOS and the iPhone, may now be compelled to eliminate its controversial 30% commission on transactions facilitated through links to alternative payment systems outside the App Store.

What does this mean for consumers and developers? Essentially, Apple appears to be on the losing side of the original Epic vs Apple lawsuit, which began when Epic Games' CEO, Tim Sweeney, introduced direct in-app purchases for Fortnite, offering players a substantial discount. This move sparked a legal battle, challenging Apple's control over in-app payments.

Previously, Apple had to abandon fees and restrictions on external linking in the European Union, but rulings in the United States had been more favorable to the company. However, the latest developments suggest a significant shift. Apple can no longer impose fees on purchases made outside of their app ecosystem, restrict how developers format or place links, limit the use of 'calls to action' such as banners that highlight potential savings, exclude certain apps or developers, or use 'scare screens' to deter users from making outside purchases. Instead, Apple must employ 'neutral messaging' to inform users they are navigating to a third-party site.

While Epic Games may have faced setbacks in certain aspects of the case, this ruling signifies a major victory for them. Apple is set to appeal the decision, but overturning it seems unlikely given the current judicial stance.

With the Epic Games Store now expanding on Android and iOS in the EU, and on Android in the US, the importance of the iOS App Store could diminish over time. This ruling could pave the way for a more open and competitive digital marketplace, benefiting both developers and consumers by fostering greater choice and potentially lower costs.