Today, Apple allowed U.S. developers to link to the web to tell consumers about cheaper subscription options. On Tuesday, the U.S. Supreme Court rejected Apple and Epic Games’ petitions.
On a support website, Apple stated that developers must pay 27% to Apple if they utilize links to drive visitors to other digital purchasing choices. Developers in Apple’s Small Business Program or auto-renewing for a second year pay 12% instead of 15%.
Apple gives developers a 3% discount to utilize alternate payment methods. This may not be enough because developers must pay another payment processor. Apple discounts commissions for Dutch dating apps by 3 points and South Korean applications by 4 points.
A lower court concluded in 2021 that Apple can’t prevent app developers from linking to alternate payment methods. The Cupertino tech titan must heed the new Supreme Court rule.
Apple said in an update describing App Store regulation changes that their payment mechanism is “the most convenient, safe, and secure” for in-app purchases. Developers would have to handle refunds and subscription management if they utilized other payment methods, and Apple wouldn’t be able to offer Family Sharing.
Apple also stated that app makers must seek link approval. Additionally, developers must provide transaction reports within 15 days of a month’s conclusion.
The iPhone maker also provided interface recommendations for developers, including warnings that third-party payment options may prevent subscription management.
According to 9to5Mac, Apple believes collecting a commission will be “exceedingly difficult, and in many cases, impossible” due to the App Store’s size, even after issuing these instructions.
According to data.ai, customers spent over $171 billion on the App Store, Google Play Store, and other Android app shops, indicating a recovery. However, the EU’s Digital Markets Act (DMA) would require Apple to enable sideloading and third-party software shops, which may hurt software store income.
Apple is not alone in facing regulatory scrutiny for phone app distribution. A jury convicted Google of anticompetitive practices in a December Epic Games lawsuit. The judge will decide future measures and remedies.
Separately, Google settled another Play Store monopoly issue with the U.S. attorney general for $700 million in December. The Play Store model was changed to give developers alternate billing as part of the case.
Google stated earlier this month that it will enable more real-money applications on the Play Store later this year and charge developers to boost its profits.
