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Apple opens gates to $1.1 trillion in app payments -- for a steep price
Apple opens gates to $1.1 trillion in app payments — for a steep price
The iPhone maker said it will charge a 27% commission for U.S. app makers to use third-party payment systems, angering developers
By Eva Dou
Updated January 17, 2024 at 9:28 p.m. EST | Published January 17, 2024 at 6:00 p.m. EST
Apple is opening up its iPhone walled garden a crack, allowing U.S. app makers to use outside payment systems — a bit of freedom that developers have long sought. But it is charging a whopping 27 percent for the privilege, far higher than app makers say is fair.
The iPhone maker announced the changes in a legal filing late Tuesday, to comply with a court order in a years-long lawsuit by Epic Games over Apple’s restrictions on app makers. After the Supreme Court declined to review the case this week, Apple moved to implement a lower court’s 2021 decision, which had been suspended pending appeal.
Previously, Apple required developers to use its in-house system to accept payments, charging hefty fees of up to 30 percent. But Apple still intends to take a 27 percent cut for the link-out to external payment systems, and the company declared a right to audit developers’ accounts to verify they are paying up.
{snip}
By Eva Dou
Eva Dou is a Washington-based reporter covering technology policy for the Washington Post. A Detroit native, she was previously China business reporter for the Post. Twitter https://twitter.com/evadou
The iPhone maker said it will charge a 27% commission for U.S. app makers to use third-party payment systems, angering developers
By Eva Dou
Updated January 17, 2024 at 9:28 p.m. EST | Published January 17, 2024 at 6:00 p.m. EST
Apple is opening up its iPhone walled garden a crack, allowing U.S. app makers to use outside payment systems — a bit of freedom that developers have long sought. But it is charging a whopping 27 percent for the privilege, far higher than app makers say is fair.
The iPhone maker announced the changes in a legal filing late Tuesday, to comply with a court order in a years-long lawsuit by Epic Games over Apple’s restrictions on app makers. After the Supreme Court declined to review the case this week, Apple moved to implement a lower court’s 2021 decision, which had been suspended pending appeal.
Previously, Apple required developers to use its in-house system to accept payments, charging hefty fees of up to 30 percent. But Apple still intends to take a 27 percent cut for the link-out to external payment systems, and the company declared a right to audit developers’ accounts to verify they are paying up.
{snip}
By Eva Dou
Eva Dou is a Washington-based reporter covering technology policy for the Washington Post. A Detroit native, she was previously China business reporter for the Post. Twitter https://twitter.com/evadou