Patreon, Epic Games, and Spotify oppose Apple’s App Store fees

Apple’s App Store fee structure has long been a sticking point for developers. In fact, the company’s App Store fees have come under intense scrutiny in Europe, as the European Commission ruled against Apple’s policies and reopened an investigation into the company for malicious compliance. Recent events have emboldened more developers to air their complaints publicly. Recently, Patreon, Epic Games, and Spotify have all moved online, which has heightened scrutiny.

European Commission Takes on Apple’s App Store

Let’s take a look at how we got to this point. In a landmark decision, the European Commission found that Apple had breached competition law because of its practices in the App Store. The Commission ruled that Apple’s requirement that developers use an in-app purchase system and pay a commission on all digital goods and services sold in their apps was unfair and stifled competition.

The ruling has significant implications for Apple. It forced the company to change its App Store policies and allow developers to offer alternative payment methods in their apps. Apple charges developers a 30% fee to use the App Store platform. Since the landmark ruling, the company has “opened up” more options for developers. However, it recently introduced an annual fee of 5% for an “initial acquisition fee” and 10% for “store services.”

Growing resistance from developers

The European Union’s ruling against Apple’s anti-competitive practices has emboldened developers to challenge the company’s new policies. Spotify, for example, has been outspoken in its criticism of the App Store’s in-app purchase system. The music streaming giant has developed strategies to drive users to its website to sign up for a subscription, bypassing Apple’s fee structure.

Epic Games, known for its popular game Fortnite, has also been at odds with Apple over App Store policies. The company famously challenged Apple’s policies by offering in-app purchases outside of the App Store, leading to Fortnite being removed from the platform. While the case attracted considerable attention, the outcome ultimately worked out in Apple’s favor, underscoring the challenges developers face when challenging the company’s policies.

Both developers have been more vocal since Apple made these changes. Epic Games was bolder than most and unfazed by Apple’s initial removal of Fortnite from the App Store. However, we don’t see Apple budging from its stance on the new fee structure.

Current Events: Patreon Faces Difficult Decision

Patreon, a platform that allows creators to connect with their supporters, is currently facing a similar dilemma. Apple has ordered Patreon to use an in-app purchase system that would result in a significant portion of its revenue going to Apple. Patreon faces a difficult decision: abide by Apple’s terms and potentially reduce creators’ earnings, or risk being removed from the App Store, losing access to a significant portion of its user base.

These events underscore the power struggle between platform owners like Apple and app developers. While the EU ruling is a significant step toward challenging Apple’s dominance, the company still has significant influence over the App Store ecosystem. The coming months will be crucial in determining how this battle plays out and what impact it will have on the future of app distribution. It’s also worth noting that while Apple’s App Store is in the crosshairs, these practices are used across many app distribution platforms, including the Google Play Store.

As the situation evolves, it’s likely that more developers will join the chorus of opposition to Apple’s App Store policies. The ultimate outcome of these challenges could have far-reaching implications for the app economy as a whole.