Supreme Court upholds Apple vs. Epic ruling, Apple must allow app developers to link to other payment systems

The outcome of the much publicized 2021 Apple vs. Epic trial saw Apple winning on most counts, except for the fact the judge did rule that Apple must relax its App Store anti steering policy and allow developers like Epic Games to include links to alternative payment systems in their apps. Apple delayed implementation of this judgement by submitting an appeal to the Supreme Court.

to consider Apple’s appeal, which means the original decision should be upheld. The App Store has faced much regulatory pressure in recent years, as governments target Apple’s monopolistic power of the iPhone software ecosystem. Apple takes a 15 30% commission on all purchases that flow through its In App Purchase system, a system that the company currently requires developers use exclusively.

It has also barred apps from telling customers about alternative payment methods that may exist. The Apple vs. Epic decision will mean that apps will now be allowed to tell their users that other payment options are available, with a direct link to the app’s website. If customers opt to use the alternative payment methods, developers will be able to collect more revenue as they won’t necessarily have to pay Apple’s cut of commissions.

However, it isn’t that straightforward as Apple may require developers to share commissions anyway. In the Netherlands, for instance, dating apps are allowed to use alternative payment methods but Apple still requires developers pay a commission equivalent to a 27% cut of revenue. So far, governments have ruled that it is illegal for Apple to force IAP upon developers, but they have not said it is illegal for Apple to collect its commissions through other means.

In the EU, the Digital Markets Act will come into force this spring and entails even more significant changes to how Apple runs the App Store. The DMA will require Apple to allow installing apps from outside the App Store for the first time on iOS, and as such these apps will seemingly be able to fully circumvent Apple’s rules..