Apple vs Epic Games: iPhone-maker updates App Store payment rules

By: |
October 24, 2021 12:20 PM

The developers can seek from users basic information, such as names and e-mail addresses, as long as the request remains optional, the iPhone-maker said.

Apple vs Epic Games (Reuters)Apple proposed the changes during a legal settlement with small app developers in August. (Reuters)

Apple has updated its App Store policy to allow developers to directly contact users about payments, a concession stemming from a legal settlement with companies challenging the tight control the tech giant exercises over its marketplace.

According to the updated App Store rules, developers can now directly get in touch with consumers about alternative payment methods, bypassing the company’s 15-30% commission.

The developers can seek from users basic information, such as names and e-mail addresses, as long as the request remains optional, the iPhone-maker said.

Apple proposed the changes during a legal settlement with small app developers in August.

Also Read | Apple vs Epic Games: Is Epic Games really winning? Apple refuses to reinstate Fortnite on iOS until final verdict

However, the concession is unlikely to satisfy developers such as Fortnite-maker Epic Games, which has been grappling with the tech giant in a long-drawn out dispute over Apple’s payments policy.

Epic Games filed a case aiming to break Apple’s monopolistic grip on the App Store, accusing the Cupertino-based company of running a monopoly.

The legal dispute between the two companies stems from Fortnite’s removal from the App Store. Apple had claimed that Epic Games violated its App Store policies by incorporating a direct payment method inside the game to avoid paying the 30% cut the tech company charges for in-app purchases.

Also Read | Apple vs Epic Games: iPhone-maker appeals to overturn ruling it called a ‘resounding victory’

Last month, a judge ordered Apple to loosen its grip on the App Store payment options, but added that Epic Games had failed to prove any antitrust violations.

For Epic Games and other big-name developers, merely the ability to redirect users for out-of-app payments is not enough: it wants players to be able to pay without leaving the game.

Apple has already appealed to overturn the ruling over control of the App Store, having previously called in a “resounding victory”.

Also Read | Elon Musk pokes fun at Apple over near Rs 2,000 ‘polishing cloth’

Apple is facing similar other investigations in the US and the European Union, which has accused it of abusing its dominant market position.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1MoS IT launches India’s first indigenous server Rudra
2MeitY releases national strategy on blockchain for its adoption in govt systems
3Important to balance open internet, regulations: Google CEO Sundar Pichai