Epic Games to Fight Apple’s 27% ‘Tax’ on External Payments

external payments developers

Epic Games CEO Tim Sweeney has criticized Apple for its new compliance plan, which he claims undermines a District Court’s injunction.

Sweeney expressed his concerns on X, stating that Apple’s plan “totally undermines the order allowing ‘buttons, external links, or other calls to action that direct customers to purchasing mechanisms, in addition to IAP [In-App Purchases].'”

The leader of the company behind Fortnite outlined several key issues with Apple’s approach. “Apple has introduced an anticompetitive new 27% tax on web purchases,” he said, emphasizing that this move is unprecedented and detrimental to price competition. Sweeney explained that developers are unable to offer digital items more affordably on the web due to this new tax, in addition to the fees charged by third-party payment processors.

Furthermore, Sweeney criticized Apple for dictating the placement of external links within apps. “Apple doesn’t allow them in the app’s ordinary payment flow. Rather, links must be separated out into a different section of the app, away from places where users actually buy stuff,” he stated.

The Epic Games CEO also highlighted the inconvenience caused to users by Apple’s requirement for a generic web browser session for purchases. “Apple requires developers to open a generic web browser session, forcing the user to log in to the developer’s web site again, to make a purchase,” Sweeney said, pointing out the additional steps that could frustrate users.

Additionally, Sweeney accused Apple of using a “scare screen” to disadvantage competing payment processors. He announced Epic’s intention to contest Apple’s plan in District Court.

“Each time your app calls the StoreKit External Purchase Link API, it will surface a system disclosure sheet provided by the system (iOS 15.4 and/or iPadOS 15.4 or later) that explains to the user that they’ll be leaving the app and going to an external website to make a purchase through a source other than Apple. When a user taps the Continue button, they will be directed to your website within a web browser,” explains Apple’s new developer resource page on setting up external link payments.

On Wednesday, Sweeney further commented on the situation, emphasizing the importance of developer freedom. “The latest Apple nonsense highlights a basic principle: developers must be free to develop the best software they can,” he posted on X. He criticized the current trend of iOS and Android becoming “increasingly awful psychological experiments on users,” unchecked by competition.

This criticism comes in the wake of the Supreme Court’s decision to deny appeals in the Epic v. Apple antitrust case, a decision Sweeney described as a “sad outcome for all developers.” Despite this, the District Court’s injunction against Apple’s anti-steering rule remains in effect, allowing developers to inform U.S. customers about better web prices.

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