Epic CEO Slams Apple's App Store Changes as 'Anticompetitive Scheme' Laden with Excessive Fees

ICARO Media Group
News
26/01/2024 23h52

In a bold statement, Epic CEO Tim Sweeney has vehemently criticized Apple's latest App Store policy changes, calling them an "anticompetitive scheme rife with junk fees" and accusing the tech giant of "malicious compliance." These changes, announced by Apple to comply with the EU's Digital Market Act, include support for alternative app stores, or "app marketplaces," for the first time in Europe.

Sweeney argues that Apple's new rules violate the terms of the Digital Market Act, as developers are forced to choose between the standard 15-30% commission terms or an alternative scheme laden with what he deems as illegal "junk fees" and new taxes on payments they don't process. Apple's approach, according to Sweeney, is a devious attempt to circumvent the new European law, leaving developers with a difficult decision between App Store exclusivity and potentially illegal store terms.

The reference to "junk fees" likely pertains to the new commission structure, which includes a Core Technology Fee (CTF). With the CTF charging €0.50 per app instance downloaded per year, it applies to all apps with high-volume installs exceeding one million downloads annually. Furthermore, the CTF extends to any third-party app marketplaces, burdening them with charges for each user download.

The mention of "new taxes on payments they don't process" is slightly ambiguous. However, it appears that under the new EU commission structure, Apple's commission for apps sold through the App Store is lowered to 17%, plus an additional 3% for in-app purchases. Payments made using alternative payment systems incur no commission.

Sweeney concludes his post by expressing Epic's determination to launch the Epic Games Store on iOS and Android. However, he highlights Apple's discretionary power to decide whether or not to allow the Epic Games Store, implicitly suggesting that the current policies grant Apple too much control. Sweeney hints at more damning revelations in the future, referring to Apple's announcement as "hot garbage."

It remains to be seen how these policy changes and the resulting criticism will impact Apple's relationship with developers and users alike. As tensions continue to rise between Epic Games and Apple, the tech industry will closely watch how these developments unfold.

Note: This article is based strictly on the information provided by the user and does not include any additional external sources or speculations.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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