Apple has been accused of not adhering to both the letter and spirit of a directive issued by a California federal judge in its legal battle with Epic Games, according to a collective statement from Meta, Microsoft, Match Group, and X in an amicus brief submitted on Wednesday.
In 2021, Judge Yvonne Gonzalez Rogers mandated that Apple could not block app developers from incorporating “buttons, external links, or other calls to action” that offer users payment alternatives outside their apps. This ruling aimed at contesting Apple’s 15 to 30 per cent fees on in-app purchases, fees that developers find hard to circumvent due to restrictions against guiding users to cheaper payment options beyond the iOS ecosystem. Apple has justified these charges as fair compensation for the services it provides through the App Store.
However, the companies behind the Wednesday brief argue that Apple’s interpretation of compliance does not resolve the underlying issues. They claim Apple’s suggestion, which allows developers to link to an external purchase option, is overly complicated and burdensome.
Epic Games has called for the enforcement of the original order, labelling Apple’s actions as a “blatant violation” of the injunction. The involvement of other major developers like Meta and Microsoft underscores the widespread impact of Apple’s policies, even on the largest tech entities.
The briefing highlights that Apple’s proposed 12 to 27 per cent fee on external transactions essentially negates the intended relief of the original mandate, offering a negligible difference from the in-app purchase fees. This could deter developers from establishing an external payment mechanism, as the minimal savings might be offset by other transaction costs, rendering the effort futile. Moreover, it’s unlikely that consumers would opt for the external method if it doesn’t offer a clear cost advantage.
The impact of Apple’s in-app payment requirements is detailed by the companies, illustrating the alleged detrimental effects on both their operations and their users. For instance, Meta points out that Apple’s enforcement of the IAP fee on a feature for boosting posts within apps has unnecessarily increased operational costs, an issue that could be mitigated if Meta were allowed to direct users to its own payment channels.
Apple is expected to present its counterarguments before a hearing set to review the enforcement of the injunction on April 30th.
