Epic Games, known for its popular games, might have to pay a huge amount, $73.4 million, to Apple. This is because of a legal fight that started back in August 2020. The Supreme Court, a top court in the U.S., decided not to get involved in this case. This means the legal battle, which has been going on for a while, is now coming to an end.
Here’s the deal: Epic didn’t like how Apple was running its App Store, particularly in how payments were handled. Apple used to make all payments go through its system, taking a part of the money made (between 15% and 30%). Developers weren’t allowed to tell users they could get things cheaper on their websites.
But things have changed a bit. Apple now says it’s okay for app makers to use their own ways to take payments. However, they still need to offer Apple’s payment method as well.
What does the Supreme Court decision mean?
When the Supreme Court chose not to hear the case, it allowed some changes to start happening, said The Verge. One big change is that app makers can now put links or buttons in their apps. These links can take users to websites where they can pay for things, but there’s a rule. They need to get a special tool from Apple to do this. And Apple will still take a commission, up to 27%, from these sales.
Tim Sweeney, who leads Epic Games, is not happy with this outcome. He thinks it’s a bad situation for app developers because they want more choices for where to sell and how to take payments.
Apple’s way of handling this is similar to what they’ve done in other countries. But, keeping their commission might stop developers from saving money and push users to keep buying within the app.
The challenges for developers
Apple is also telling developers about the challenges of using their own payment systems. If they choose to do this, they won’t get help from Apple with things like refunds and managing purchases. Apple says, “If you go this way, you’re on your own.” On top of that, Apple is also letting developers email their customers with special offers and different ways to buy things. This is because of another legal case.
Tim Sweeney isn’t just watching all this happen. He’s planning to fight against Apple’s new rules in court. He’s especially upset about Apple’s plan to take a commission on web purchases still.
The Supreme Court denied both sides’ appeals of the Epic v. Apple antitrust case. The court battle to open iOS to competing stores and payments is lost in the United States. A sad outcome for all developers.
— Tim Sweeney (@TimSweeneyEpic) January 16, 2024
Why Epic might owe Apple money?
According to MacRumors, Epic might have to pay Apple because of what happened with their game, Fortnite. Epic had set up a way to pay that didn’t use Apple’s system in the game. They knew they might have to pay if they lost their fight against Apple. Now that they have, Apple is asking for the money.
The next step in this story will happen on March 5, 2024. The court will look at Apple’s request for the legal fees and any extra costs from the ongoing legal issues. This case shows how big and complicated fights between tech companies can be and how the rules can change.
Featured image credit: Zhiyue/Unsplash
