In a recent court filing, Fortnite-maker Epic Games has accused Apple Inc. AAPL of not complying with court orders related to App Store commissions and alternative payment options.
What Happened: Tim Sweeney-led Epic Games alleges that Apple has not fully adhered to court orders requiring it to allow developers to direct users to subscriptions outside the App Store, in court filings spotted by Apple Insider.
After the Supreme Court declined to hear appeals from either party, Apple was obliged to comply with the lower court’s anti-steering ruling. This ruling stated that Apple could no longer prevent developers from informing customers about alternative offers through their apps.
However, Epic Games asserts that Apple has implemented this with restrictions that diminish its impact. Developers must apply for what Apple calls “Link Entitlement,” and if granted, can only provide alternative links in the US iOS and iPadOS App Store.
Moreover, developers can only mention once, under very specific conditions, that an external payment option is cheaper. While Apple has reduced the commission it requires from developers for purchases made through external links, it has only decreased it to 27% from 30% earlier.
Epic Games has disputed Apple’s claim of compliance with the injunction in its filing and said it plans to file a motion seeking appropriate relief from the court.
Why It Matters: This dispute comes in the wake of Apple’s controversial decision to levy a 27% fee on all sales originating from links clicked in apps, a move that has drawn sharp reactions from developers and industry analysts alike.
Apple swiftly implemented this new commission on purchases made by clicking on links in iOS apps after scoring a partial victory in Epic Games’ antitrust lawsuit.
This decision has further strained the relationship between Apple and app developers, adding another layer of complexity to the ongoing legal battle.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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