Epic Games has introduced its own app store for iOS users within the European Union, taking advantage of recent regulations that provide more flexibility within Apple’s ecosystem. The move is intended to offer developers an alternative to the Apple App Store, featuring lower commission rates and the option to use different payment methods. Nonetheless, The Verge reports that Apple’s existing fees for distributing third-party apps pose significant barriers not just for Epic but for other developers as well.
Challenging Fee System
Apple requires developers who distribute apps outside its App Store to pay various fees. Those fees include a yearly installation fee of 50 euro cents per user after surpassing a certain download threshold, a 10 percent commission on all sales across any platform, and a 5 percent fee on purchases made within a year of the app’s installation.
Additionally, marketplace operators like Epic charge their own fee, which in Epic’s case is 12 percent. Comparatively, developers solely on the App Store may face up to 30 percent commission on in-app purchases and up to a 25 percent fee for external link purchases, but there is no per-user installation fee.
Developers’ Financial Strains
Apple’s fee structure is particularly tough on smaller developers who do not generate high revenues. While major firms like Epic can offset these costs due to larger user bases and revenue from hit games like Fortnite, smaller developers—especially those with high download numbers but lower revenue—could see a substantial portion of their income go to Apple. The setup makes it challenging for many developers to consider listing their apps on Epic’s iOS store.
Bob Roberts from Wonderbelly Games shared apprehensions with The Verge about the new regulations, stating that while they offer flexibility, they do not substantially benefit developers or users. Raffaele D’Amato, behind Arcadia – Watch Games, observed that alternative stores might provide better exposure but were skeptical about overcoming Apple’s fee limitations.
History of Tussles Between Apple and Epic Games
Of course, there has been plenty of legal history between Apple and Epic Games. Apple was locked in a legal confrontation with Epic Games and there was a later refusal by the U.S. Supreme Court to hear Apple’s appeal. Apple later updated its App Store Guidelines in the US, allowing developers to incorporate alternative payment system links within their apps, while adhering to certain conditions.
In January, Apple also made major changes to its App Store policies in Europe. The updates aim to provide developers with extra app distribution options and payment systems while still trying to preserve user privacy and security.
Last Updated on November 7, 2024 3:11 pm CET
