Apple Vs Epic Games: iPhone app developers granted access to alternative payments amid legal battle

In a significant development following a protracted legal battle with Epic Games, Apple announced its decision to allow iPhone app developers to use alternative payment systems while still maintaining certain conditions and fees, reported AFP. 

The breakthrough comes after the US Supreme Court declined to hear appeals from both Apple and Epic Games, effectively affirming a lower court ruling that favored Apple.

Epic Games initiated the legal dispute in 2020, aiming to challenge Apple's control over the App Store, alleging the tech giant's monopoly practices. Central to the controversy was Apple's practice of charging up to 30 percent on all financial transactions within its app store, leading to accusations of an unjust "tax" on companies utilizing the platform.

While the federal court in San Francisco largely rejected Epic's lawsuit, it did concede that apps could inform users of alternative payment methods outside of Apple's ecosystem. With the legal saga seemingly concluded after the Supreme Court's decision, Apple presented a plan to comply with the lower court's ruling, permitting developers to use external payment systems through buttons or links within apps. However, Apple stated it would still levy a 27 percent fee on transactions made using payment systems other than its own.

Epic Games CEO Tim Sweeney expressed dissatisfaction with Apple's proposed compliance, labeling it "bad-faith" and arguing that the imposed fee stifles price competition. The dispute highlights the ongoing tension between tech giants and app developers over control and fees within app ecosystems.

Apple's filing also outlined a requirement for developers to qualify for "link entitlement" privileges, which could be revoked if they fail to adhere to Apple's rules. The iPhone maker justified this as a measure to mitigate risks associated with external payment links.

As the tech industry grapples with issues of antitrust and market dominance, the resolution of this legal battle sets a precedent for app store dynamics. Apple's concession to allow alternative payment systems reflects a shift in its traditionally stringent control over the App Store, signaling potential changes in the broader landscape of app development and distribution. 

(With inputs from AFP)