Epic Games Jumps on Apple Ruling with New Developer Payment Option
Remember when Apple had to permit devs to link out to their own websites for payments. It sounded good, but Apple made it messy. They put up warning prompts to users and still took a hefty cut (nearly as high as regular App Store fees). Well, a US judge just told Apple to knock it off.
Now Epic Games, never to miss a chance in its ongoing fight against Apple, is jumping at it fast. They're offering to developers a possibly far more appealing deal for taking payments outside of the App Store.
Understanding the Scope: Not an Epic App Store on iPhone in the US
Not quite, at least not in the US. Unlike in Europe, this court ruling doesn't force Apple to open up iOS to competing app stores here. So, you'll still get your iPhone and iPad apps primarily from Apple's official App Store.
And for subscriptions or buying things directly within an app, developers still typically have to use Apple's built-in payment system.
Epic's Webshop Offer Explained
Epic is adding a so-called "webshop" option. Here's how you should consider it: developers are able to host their own payment pages on the Epic Games Store. When you're within an app, you can be shown a link that opens this Epic-hosted webshop to complete a purchase.
The incentive for developers: Since Apple's previous system for these external links still equated to a 27% commission – hardly less than the standard 30%. There was little incentive.
The Big Draw: Saving Money (for Devs and Perhaps You)
Here's the deal-breaker: the money. Apple typically charges 15% on the first million in developer revenue, and 30% after that. Epic's deal for these webshop payments is:
- No commission on the first $1 million in revenue per app, per year.
- Just a 12% commission after that.
That's a massive potential saving for developers. And if developers are saving money, they might just pass some of those savings along to you, the user, by offering lower prices on purchases made through these webshops compared to in-app purchases.
Potential User Inconvenience
The greatest annoyance is inconvenience. Instead of an easy tap within an app, you'll click a link, go to a webpage, and possibly enter your payment details there. It's a couple of extra steps.
That being said, if it earns you a decent amount of savings on a subscription or game purchase, that small aggravation might be well worth it.
The Path Forward
All of this is relatively new. We will simply have to wait and see if developers take up Epic's webshop offer, if users get used to paying outside the app from time to time, and what Apple does next. Apple has already indicated that it will appeal the recent court ruling, so this drama is likely far from over.
