The Apple victory was achieved by another app store

Apple’s Walled Garden: The Implications for Developers, Consumers, and Laws in High-Surface App Stores

The Coalition for App Fairness, an organization founded by companies like Tile and Spotify that are working towards app fairness, commented on the change. Rick VanMeter, executive director of the CAF, said in a statement that Apple’s approach to “compliance” with the District Court’s decision will not benefit developers and consumers. “These changes do nothing to enhance consumer choice” or to “lower prices for in-app purchases or inject competition into Apple’s walled garden.”

Apple has implemented similar policies elsewhere — but regulators aren’t too happy with the move, either. In 2022, Apple started letting dating app developers in the Netherlands use alternative payment options with the same 27 percent tax. However, Dutch regulators fined Apple $55 million for failing to comply. Apple also implemented a similar policy for all app developers in South Korea, where a new law prevents Apple and Google from forcing developers to use first-party payment processors. South Korea warned both Apple and the internet giant of fines for violating the new payment rules.

For any consumers brave enough to keep going and make a purchase, Apple will collect up to 27 percent of the revenue, via a newly created fee that extends the much-loathed levy that previously had been placed only on in-app purchases. It acknowledges that collection and enforcement will be difficult, though it says that “as a practical matter, it will be impossible.”

Apple’s tweak allows developers selling apps in the US to link from their apps to purchase pages on their own websites. This was previously banned and developers had to pay up to 30 percent of revenue to Apple in order to use it. But to link out to alternative purchase options on their websites, developers must apply for permission and also offer in-app purchases through Apple’s billing system. And they have to certify that they have processes for handling billing complaints and that their payment processors meet what Apple calls “certain industry standards.” Apple needs to approve the wording of the link between the alternative purchase options. Users who click on the links will get a full-screen warning that they are taking a risk going into a world where Apple’s protections do not apply.

The US Supreme Court on Tuesday refused to hear the appeal of the developer, so Apple looks like it has won its expensive legal battle. That means up to 30 percent of app developers’ sales will continue to flow into Apple’s pockets—just as they did before Epic picked a fight in 2020.

What do legal defense fees buy? Billions of dollars in annual App Store revenue was under threat until this week.