Apple allows external payments after Epic Games ruling

Apple has updated its US App Store policies to allow developers to link to external payment methods, following a ruling favoring Epic Games.

The decision, from Judge Yvonne Gonzalez Rogers, forces Apple to lift its ban on such links, though Apple plans to appeal.

The new policy could boost crypto and NFT apps, previously limited by Apple’s commission on sales.

However, Apple will still restrict activities like mining and reward-based apps.

Outside the US, Apple’s policies remain unchanged, and Epic Games’ Fortnite is expected to return soon.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Epic’s costly battle against platform fees represents a strategic industry investment

Epic Games’ victory against Apple comes after nearly five years of legal battles that began when Epic deliberately violated App Store policies in August 2020, a calculated move with substantial risk.

The company has consistently invested in reducing platform fees across the industry, offering developers a 12% commission on its own Epic Games Store compared to the standard 30% on competing platforms1.

Epic’s strategy of accepting short-term losses for long-term industry change mirrors its approach to competing with Steam, where it reportedly lost hundreds of millions to gain market share2.

This legal battle is part of Epic’s broader business strategy that already attracted 270 million users to its store by 2023, generating approximately $950 million in revenue despite the significant costs of challenging entrenched platforms1.

By forcing open Apple’s ecosystem, Epic potentially creates value for its own business while simultaneously lowering costs for all developers, a rare example of competitive litigation that benefits an entire industry.

2️⃣ Antitrust interventions continue to reshape tech industry power dynamics

The ruling against Apple echoes the landmark Microsoft antitrust case of the 1990s, when government intervention prevented Microsoft from leveraging its Windows monopoly to dominate web browsing through Internet Explorer bundling3.

Judge Yvonne Gonzalez Rogers’ decision follows a historical pattern where targeted regulatory actions create space for competition and innovation. The Microsoft case is widely credited with creating the conditions that allowed Google and other web companies to flourish3.