Shortly after a recent court ruling, I had a chance to chat with Tim Sweeney, CEO of Epic Games. This ruling was a major development in an ongoing antitrust case involving Apple and Epic’s popular game, Fortnite. Sweeney expressed that the decision “completely shuts down” Apple’s App Store rules that enable it to collect excessive fees.
The Ninth Circuit Court of Appeals largely sided with an earlier ruling from Judge Yvonne Gonzalez Rogers. The court stated that Apple had not followed her 2021 order, which allowed app developers to direct users to alternative payment methods. Sweeney called this a “huge win” for developers everywhere.
One key takeaway from the court’s decision is its instruction to Judge Gonzalez Rogers to reassess how Apple can charge reasonable fees for purchases made through external links. Previously, Apple imposed a hefty 27% fee on such transactions and required that these payment links be displayed in plain text. The court agreed that Apple could charge developers for the costs associated with managing these external links, but only to cover essential expenses.
Sweeney noted that if developers wanted to submit apps with custom payment links, reasonable fees would be expected. However, he firmly stated that Apple shouldn’t be allowed to impose arbitrary fees.
Interestingly, after nearly five years, Fortnite has returned to the U.S. App Store. This follows Apple’s initial removal of the game when Epic integrated its own in-app payment system. In Europe, regulatory efforts like the Digital Markets Act are pushing for more flexibility, allowing alternatives to Apple’s App Store, which could help make Fortnite available through Epic’s mobile store there.
Sweeney shared his thoughts on Apple’s current approach. He believes Apple has been collecting unjustified fees and is waiting for regulations to force change. He hopes for a time when Apple will adopt a unified global policy that benefits everyone.
He also predicted the Ninth Circuit’s ruling could inspire similar regulatory actions globally. “Why would any country allow Apple to impose fees deemed illegal in the U.S.?” he questioned.
In another update, Fortnite has also made a comeback on Google Play. Epic Games recently reached a settlement with Google, ending their legal disputes worldwide. Sweeney praised the new leadership at Android, noting their positive shift in handling relationships with developers.
This evolving situation highlights the ongoing battle between tech giants and independent developers. As regulations tighten around big companies, the landscape of app stores could change drastically, impacting how developers operate and earn revenue in the future.
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