The new update in the policy of the Apple app store in the US market by introducing 27% commission on all alternative payment methods has brought a storm of criticism from the major runners.
The major runners Spotify and Epic Games have drawn criticism by saying “Apple is playing tactics to secure their profit moreover the Epic Games CEO tagged this policy as exploitative for price conflict. It is a clear gimmick to force developers to choose alternative payment methods and not link any other payment method.
By doing this the developers have to give a 27% commission to the Apple store from all sales generated from in-app links. Even if there are no sales done, the developers still have to update the Apple store about the transaction in 15 days.
To include any other payment method, the developers have to get Apple’s approval. After getting the approval from Apple the developers still have to follow some rules to add any outside payment method. They have to put the link of their payment method, but that link can’t be opened on the app store, the link will land the customers on the default browser. The customers have to sign up again on the developer’s website.
It is both good and bad news for developers in the USA. However, the customers may develop a sense of insecurity as they are going to sign up and pay for a 3rd party website. Popular developers have shown disappointment by saying this act is an act of unlawfulness and tagged them as they don’t want to see the developers grow.
Apple’s implementation of similar policies in other regions has faced scrutiny from regulators. In 2022, Apple allowed dating app developers in the Netherlands to use alternative payment options with a 27 percent tax, but the company was fined $55 million by Dutch regulators for non-compliance.
South Korean authorities have issued warnings to both Apple and Google regarding the possibility of fines for non-compliance with the new payment regulations. The actions taken by Apple have captured the notice of regulatory bodies and led to legal ramifications.
