8/29/2023 0 Comments Apple vs epic games update![]() ![]() Selling SaaS on the App Store becomes more viable. These changes make room for creators to experiment with new pricing models and money-making strategies. By unlocking the door to competition around how sales are made on iOS, a higher proportion of revenue will go back into the hands of developers who take advantage of less costly alternatives. If Apple makes moves to open up in-app purchases in the wake of the noise around the Epic case, being an independent software company or developer on iOS will soon be far easier and more sustainable. Following another lawsuit, they announced an update in August that allows developers to use communications like email to point customers to payment methods outside of their iOS App. They have a history of relaxing policies following court decisions and related publicity, and this isn't the only pushback around iOS payments Apple has been confronted with recently. It remains to be seen how Apple will respond in the wake of the order, despite their intentions to appeal. They also prevent developers from taking a hands-on approach to addressing churn recovering failed payments or letting customers pause their subscriptions are both out of the question. These constraints introduce points of friction for customers that could be avoided with alternative payment systems. ![]() Apple dictates certain pricing tiers for products on the store and doesn’t allow coupons or discounts, limiting the control app developers have over their own pricing strategy.Īpple’s model also denies creators access to their customer data and blocks them from providing support like refunding transactions or making changes to subscriptions. It’s not just the sizable transaction fee that has disadvantaged iOS developers to date forced to use Apple’s payment system, developers must manage separate billing systems on the web and in-app, fragmenting their data. It demands in return a 30% commission (15% in certain circumstances). “While the court ruled in Apple’s favor on eight of nine counts, it ordered Apple to remove restrictions banning developers from linking to alternate payment systems in their apps, a move that will, in turn, let them dodge Apple’s much-criticized 30 percent commission, as well as the total dominance the App Store has over gaming on iOS.”ĭevelopers looking to release their app on iOS have had to do so through the App Store and its payments system – Apple’s “walled garden” – which purportedly offers safety, security, and access to a vast audience of users. ![]() The court case concluded in early September 2021. ![]() Shortly after in August 2020, Epic sued Apple, arguing that Apple was abusing its monopolistic position and engaging in anti-competitive practices by only allowing Apple payment systems in apps.” “ created its own in-app payment system to avoid Apple’s 30% cut of its in-app purchases, which resulted in a ban of “Fortnite” from the App Store. The App Store is one of the largest of those channels, which is why so many have been keeping tabs on the legal battle between ‘Fortnite’ creator Epic Games and Apple. Many have shied away from using it as a distribution channel, despite the opportunity created by the growing ‘consumerization of the enterprise’ trend, which sees big businesses increasingly adopt consumer-style solutions purchased through consumer channels. The cost and constraints of selling on Apple’s App Store have been hard for a lot of SaaS companies to stomach. ![]()
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