Apple is facing a legal challenge from Meta, Microsoft, X and Match

By: Vlad Cherevko | 21.03.2024, 00:26

Recently, four major companies - Meta, Microsoft, X and Match Group - have spoken out against Apple's decision to charge a fee for iOS payments made outside of the App Store. These companies filed a legal challenge against Apple's decision to charge a fee for iOS payments made outside of the App Store, thus supporting Epic Games in its long legal battle with Apple.

Here's What We Know

Apple has been forced to allow third-party payments on iOS under the European Union's Digital Markets Act and a court ruling in the US. The company takes up to 30 per cent of App Store purchases. Perhaps fearful of losing a significant portion of the fee, Apple has said it will charge up to 27% when developers process purchases outside the App Store.

The companies supporting Epic's petition argue that the fee Apple is charging for external payments effectively leaves the previous rules in place. Microsoft noted that Apple's latest policy limits its ability to offer subscriptions and discounts to users. Match Group argues that Apple's decision will affect many developers and users and that it hinders the court's attempt to offer price competition to consumers. And according to X (Twitter), the 27 per cent fee gives developers little incentive to link to external payment methods.

Meanwhile, Meta charges more for its ad-free plans and promoted posts on its iOS apps than it does online. Meta concludes that it should be able to direct users to other payment options for promoted posts.

Meanwhile, Epic is preparing for the debut of its game shop on iOS and Android later this year. At the Game Developers Conference, the company said the shop will be cross-platform for mobile, PC and macOS. The company plans to charge mobile game developers the same 12 per cent it gets from PC game sales.

Source: The Wall Street Journal