Tech Giants Accuse Apple of Not Complying with Court Order in Epic Games Trial
ICARO Media Group
In a recent amicus brief filed on Wednesday, tech giants Meta, Microsoft, Match Group, and X have accused Apple of failing to uphold the requirements set by Judge Yvonne Gonzalez Rogers in the trial against Epic Games. The companies claim that Apple's proposed restrictions on app developers using external payment options do not adequately address the issue of exorbitant fees and hinder competition.
At the center of the controversy is Apple's practice of charging developers fees ranging from 15 to 30 percent on in-app purchases. This has been a point of contention for Epic Games and other developers who argue that these fees are unreasonable and limit their ability to offer lower-priced alternatives outside of the iOS ecosystem.
According to the amicus brief, Apple's proposed solution, which allows developers to point to external purchase links, is overly complex and burdensome. The companies argue that Apple's intention is to make alternatives to its own in-app purchase system impractical, thereby contradicting the spirit and objectives of the court injunction.
Epic Games, in particular, is seeking to enforce Judge Gonzalez Rogers' original order, stating that Apple has blatantly violated the injunction. This development is significant as it highlights the far-reaching impact of Apple's rules on even the largest tech companies, such as Meta (formerly Facebook) and Microsoft.
The amici also critique Apple's additional fees of 12 to 27 percent on external purchases, which they believe defeat the purpose of the new requirement. These fees would negate the potential gains from moving away from Apple's system, making it financially unfeasible for developers to establish their own external payment options. Moreover, customers are unlikely to choose the external option if it offers the same or higher prices.
In their brief, the companies detail specific examples of how Apple's in-app payment requirements adversely affect their businesses and users. Meta, for instance, highlights how the recent change in Apple's policy forces them to pay the in-app purchase fee for a product that allows advertisers to boost posts within their apps. This has increased Meta's costs, whereas directing users to their own payment options would have been a more cost-effective solution.
Apple spokesperson Fred Sainz, when asked to comment on the amicus brief, pointed to the company's statement of compliance to the court, claiming that they have fully complied with the injunction since January 16th. Apple asserts that "unregulated external payment links will 'harm users, developers, and the iOS platform more generally'" and argues that the requirements for external payment links are necessary to protect user privacy, maintain ecosystem integrity, promote information flow, avoid user confusion, and enable efficient app reviews.
The case of Apple's compliance with the court order will be discussed at a hearing scheduled for April 30th, giving Apple an opportunity to respond to the accusations made against them.
Update March 20, 2024 4:40PM: Apple has released a response, defending its compliance with the injunction.