Epic Games Accuses Apple of Charging 'Unjustified Fees' for Required Non-App Store Purchase Link

Epic Games is once again after Apple, this time accusing the Cupertino company of violating a court ruling that requires Apple to allow developers to offer in-app links to direct customers to third-party purchase options on the web.

app store blue banner epic 1
Apple tweaked its U.S. App Store policies back in January, and developers are permitted to put one link in their apps that leads to a website where customers can make a purchase without using the in-app purchase system. Apple is still charging commission for these purchases, requiring developers to pay between 12 and 27 percent (three percent lower than the 15/30 standard fee).

‌Epic Games‌ is unhappy with the fee that Apple continues to charge, today telling the court that Apple has not complied with the order, and asking that Apple be held in contempt of court. ‌Epic Games‌ claims that the fees make the links "commercially unusable," thereby subverting the injunction.

Apple violates the Injunction in three ways. First, with respect to External Links, Apple has imposed new fees and enacted a slew of new rules that work together to make the links commercially unusable. This new fee and accompanying web of restrictions subverts the purpose of the Injunction, allowing Apple to continue extracting its excessive commissions and making it effectively impossible for a developer to inform users about, and direct users toward, an alternative platform for making a purchase.

Second, Apple continues to categorically prohibit any steering using "buttons" or "other calls to action". Specifically, Apple does not allow External Links that resemble a "button" in any way.

Third, Apple's Guideline 3.1.3 still prohibits certain apps, including all multiplatform services (i.e., apps that operate across multiple platforms and allow users to access the same content across these platforms, including popular games such as Minecraft), from "within the app, encourag[ing] users to use a purchasing method other than in-app purchase". This language expressly contravenes the Injunction by prohibiting any steering to alternative purchasing methods.

‌Epic Games‌ collected statements from other developers that have spoken out against Apple's App Store fees, including Paddle CEO Christian Owens and Down Dog CEO Benjamin Simon.

Apple was initially ordered to make the ‌App Store‌ changes in 2021 as part of its court battle with ‌Epic Games‌. Judge Yvonne Gonzalez-Rogers, who oversaw the case, took issue with Apple's anti-steering rules. Apple was able to delay implementing the ‌App Store‌ changes for a few years while it appealed, but none of the courts decided to change the verdict. Apple ultimately took it to the Supreme Court, but the court declined to hear the case, so Apple had to comply immediately at the beginning of the year.

Apple has said that it is fully in compliance with the injunction. From Apple's January statement of compliance:

As of January 16, 2024, Apple has fully complied with the Injunction: It is striking the relevant parts of the App Store Review Guidelines applicable to apps on the U.S. storefronts of the iOS and iPadOS App Stores and implementing new rules that permit developers to (i) include in their apps buttons or links with calls to action that direct customers to purchasing mechanisms in addition to IAP and (ii) communicate with customers through points of contact obtained voluntarily from customers through account registration within the app. As a result of these changes, developers have the option of informing consumers, both within and outside the app, about alternative purchase mechanisms in addition to IAP.

‌Epic Games‌ claims that the fee Apple charges for the link is "financially unattractive" for developers who want to choose another payment solution, and it "prevents any meaningful competition between payment solutions." The company wants the court to require Apple to bring its policies into compliance with the injunction.

Popular Stories

iPhone 17 Plus Feature

iPhone 17 Lineup Specs Detail Display Upgrade and New High-End Model

Monday July 22, 2024 4:33 am PDT by
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
iPhone SE 4 Vertical Camera Feature

iPhone SE 4 Production Will Reportedly Begin Ramping Up in October

Tuesday July 23, 2024 2:00 pm PDT by
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
Generic iPhone 17 Feature With Full Width Dynamic Island

Kuo: Ultra-Thin iPhone 17 to Feature A19 Chip, Single Rear Camera, Semi-Titanium Frame, and More

Wednesday July 24, 2024 9:06 am PDT by
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
iPhone 17 Plus Feature Purple

These 5 Features Will Make the iPhone 17 the Biggest Update in Years

Monday July 22, 2024 4:02 pm PDT by
The upcoming iPhone 16 models that we're expecting to see in September are going to be quite similar to the iPhone 15 models, but rumors suggest that Apple is making big changes in 2025. We've been hearing hints of an all-new device in the iPhone lineup, and it may be the most expensive iPhone Apple has offered to date. New 'Slim' Design Rumors have taken to referring to the new iPhone 17...
iOS 18 on iPhone Feature

Everything New in iOS 18 Beta 4

Tuesday July 23, 2024 1:08 pm PDT by
Apple released the fourth beta of iOS 18 today, introducing small changes to a number of features throughout the operating system. There are no big additions in this beta, but Apple is continuing to refine existing settings and design choices. Apple plans to continue updating iOS 18 over the next few months, with the update set to be released this fall. We've rounded up all of the changes...
iPhone SE 4 Thumb 1

iPhone SE 4 Rumored to Launch Early Next Year With OLED Display, 48MP Camera, and More

Monday July 22, 2024 7:22 am PDT by
The fourth-generation iPhone SE will offer a series of major upgrades over the current model, the leaker known as "Ice Universe" claims. The information was listed in a post on Weibo, which also detailed the specifications of the iPhone 17 lineup. As previously rumored, the fourth-generation iPhone SE is expected to feature Face ID and USB-C, marking a major upgrade from current and previous ...
iPhone 17 Plus Feature Purple

iPhone 17 Rumored to Feature Mechanical Aperture

Tuesday July 23, 2024 9:32 am PDT by
Apple is planning to release at least one iPhone 17 model next year with mechanical aperture, according to a report published today by The Information. The mechanical system would allow users to adjust the size of the iPhone 17's aperture, which refers to the opening of the camera lens through which light enters. All existing iPhone camera lenses have fixed apertures, but some Android...

Top Rated Comments

threeseed Avatar
19 weeks ago

I don't see why Apple should get a commission for in-app purchases when they're not handling the payment transaction. Epic is right again. You may not like them, but some company or other needed to make these arguments in court and I'm glad they're doing it.
a) Because Apple has a right to charge a fee for its SDKs. Same as Epic does with Unreal Engine.

b) Many companies over the years have brought up these arguments in court. They all fail because it's completely legal to charge a fee for people to use your products and services.

c) At no point is anyone forcing Epic to develop for iOS and at no point did anyone force them to sign the agreement between themselves and Apple.
Score: 73 Votes (Like | Disagree)
m4mario Avatar
19 weeks ago
Apple has never prevented any company from using non-proprietary technologies to develop and distribute apps on Apple devices.

HTML 5 is an open standard. Java script is available widely. Any company can develop a web app, and distribute it on any 3rd party App Store developed with a similar technology, without paying Apple a dime, or getting Apple’s approval.

What Apple asked for, is if they use Apple technologies, like XCode, iOS SDKs, etc, to pay a commission on digital goods sold. Which almost every big company running subscriptions has bypassed now. Netflix, YouTube or Spotify, do not pay Apple a commission because they are signing up outside the App. And all the banking & finance apps, car apps, bakery apps, shopping apps, etc. They don’t pay Apple anything as well (other than the extremely low $100 a year membership). As they are not selling digital goods.

All this nonsense about 3rd party App Stores and external payment mechanisms are not about giving any real choice to the end-user or companies.

They are just about using Apple’s technologies for free. They want to use Xcode, Apple SDKs and all the polish for their apps that comes with using it, Apple training, Apple engineers’ time, the recognition and reachability that comes from the Apple App Store, all the vetting & advertising that Apple does to achieve it, etc. But they want it for free.

And The EU just making up special rules to do it, is nothing but forced extortion of Apple’s proprietary technologies.

In the process, they don’t care if they break down the trust and no-nonsense experience users buy Apple products for. Or maybe they do want to break it down.

There is little the Apple user in EU (or outside) stands to gain from these, other than a loss in quality of the ecosystem they’ve paid all these years for, just as much as Apple has worked hard building it.
Score: 65 Votes (Like | Disagree)
gatorvet96 Avatar
19 weeks ago
Does Epic allow developers for games on Epic's game store to advertise payment outside of their store?
Score: 58 Votes (Like | Disagree)
erikkfi Avatar
19 weeks ago
I don't see why Apple should get a commission for in-app purchases when they're not handling the payment transaction. Epic is right again. You may not like them, but some company or other needed to make these arguments in court and I'm glad they're doing it.
Score: 50 Votes (Like | Disagree)
surfzen21 Avatar
19 weeks ago
At this rate I'm surprised Epic games isn't demanding that Apple pay them for the "privilege" of Epic putting their games on Apples platform.
Score: 46 Votes (Like | Disagree)
LeeW Avatar
19 weeks ago
I don't like Epic and their persistent whining, but they are right.
Score: 41 Votes (Like | Disagree)