Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
The implications of this ruling go far beyond Epic. It essentially blows away the foundation of the App Store’s business model: a commission fee for every purchase. Big players, which contribute most to Apple’s profits, now have the option to bypass Apple’s fees entirely. The App Store profits could potentially dramatically decrease over time. Very bad for Apple.
No it doesn’t. The court’s ruling says that Apple is entitled to a commission for every purchase, even for purchases made outside the App Store.
 
Help me out... what does all this mean in practical terms?

Since this case was about Epic... I'll use Fortnite as an example. (we'll pretend Fortnite is back in the App Store for now)

I'm in Fortnite. I want to buy VBucks.

What does this process look like?

Are there items to purchase inside the app like there used to be? Different amounts of VBucks?

Or is it just a link to their website?

Or both?

And what do you do when you get to their website? Do I enter my credit card with Epic? Or is ApplePay there too?

I'm so confused. We're using terms here like "alternative payment methods" and "3rd-party app stores" so I'm a little confused.

Hell... we can't even agree on who won this case. Some say Epic... some say Apple... 🤣

I just want to know how future apps will look... and how the future App Store will operate.

Does this help the small developer? Or just major corporations like Epic, Spotify, Netflix, etc?
 
the judge didn’t mention a limit on if when apple can bring epic back in the App Store. Heck it can be permanent

but how can that be bad for apple when epic ruined they’re own reputation
It makes Apple a Monopoly. If MS boots an app developer off of their Microsoft Store on Windows. That developer can still sell their app on Windows pc. If Apple won't let Epic back in even after comply to the new rules, Epic can make an example of this to the courts on how iPhone should allow side loading like android.
 
  • Haha
Reactions: subi257
Bottom line is if I'm redirected, I won't bother. However, if Apple provides a API (for a fee i assume) and it's seamless, I'm fine with it.

But, I'm not understanding the whole portion of the cut that Apple takes. If they are not getting it directly from payment, do they just bill the developer? Someone has to pay for the store and infrastructure.

What makes it easy for me to buy apps is not dealing the developer. A pain point for me buying software on my Mac. Hate buying from devs. Just a a pain and have had more card compromised many times. I mean are you really wanting to pay a developer in China directly? Good luck with that.
 
It makes Apple a Monopoly. If MS boots an app developer off of their Microsoft Store on Windows. That developer can still sell their app on Windows pc. If Apple won't let Epic back in even after comply to the new rules, Epic can make an example of this to the courts on how iPhone should allow side loading like android.

I hate to admit it but you are right. Epic though don’t deserve to go back
 
”621 The Court also notes that in the but-for world where developers could use an alternative processor, Apple would still be contractually entitled to its commission on any purchase made within apps distributed on the App Store. Thus, so long as the alternative processor charged a non-zero commission or fee for its services, no economically rational developer would choose to use the alternative processor, because on each transaction, they would still have to pay Apple its commission, and they would have to pay the alternative processor a commission for its services.”

Basically the court recognised and affirmed that Apple can still charge their commission on all IAP - even if the IAP is not through AppleIAP.

So as a developer of a game with micro-transactions, I can offer a 3rd party payment processor.
But if I offer an alternative to AppleIAP then I still have to pay Apple the same amount and in addition I have to pay my 3rd party payment processor and do more work to integrate said 3rd party payment processor.

I strongly believe Apple will try to make this adjustment as easy for us developers as possible.
Apple will likely provide a new API we can use to automatically calculate the commission due to Apple as part of the method they facilitate for us developers to implement a 3rd party payment processor.

This will mean less admin for developers who want to implement a 3rd party payment processor. Apple may even require us to use this new API when implementing a 3rd party payment processor - to reduce admin their end. Apple will probably bill developers for the commission monthly.

If this happens the way I expect then practically nothing will change for consumers except we will sometimes have in our apps a more-expensive and awkward—to-use payment option as an alternative to AppleIAP.
 
  • Like
Reactions: theotherphil
Help me out... what does all this mean in practical terms?

Since this case was about Epic... I'll use Fortnite as an example. (we'll pretend Fortnite is back in the App Store for now)

I'm in Fortnite. I want to buy VBucks.

What does this process look like?

Are there items to purchase inside the app like there used to be? Different amounts of VBucks?

Or is it just a link to their website?

Or both?

And what do you do when you get to their website? Do I enter my credit card with Epic? Or is ApplePay there too?

I'm so confused. We're using terms here like "alternative payment methods" and "3rd-party app stores" so I'm a little confused.

Hell... we can't even agree on who won this case. Some say Epic... some say Apple... 🤣

I just want to know how future apps will look... and how the future App Store will operate.

Does this help the small developer? Or just major corporations like Epic, Spotify, Netflix, etc?

It‘s gonna be a mess. Apple will have to allow a link or a button that leads back to the developer site where the user will have to input their CC info or use ApplePay. But there’s no rule on where the link is to be placed or how prominent the button has to be. Personally, I’m not going to enter my financial data on every rinky dink site that wants to charge my daughter for a new character for her games. I’ll just stick with Apple’s system, and that’s what I think most people will do anyway. It’s a trust/security thing.
 
”621 The Court also notes that in the but-for world where developers could use an alternative processor, Apple would still be contractually entitled to its commission on any purchase made within apps distributed on the App Store. Thus, so long as the alternative processor charged a non-zero commission or fee for its services, no economically rational developer would choose to use the alternative processor, because on each transaction, they would still have to pay Apple its commission, and they would have to pay the alternative processor a commission for its services.”

Basically the court recognised and affirmed that Apple can still charge their commission on all IAP - even if the IAP is not through AppleIAP.

So as a developer of a game with micro-transactions, I can offer a 3rd party payment processor.
But if I offer an alternative to AppleIAP then I still have to pay Apple the same amount and in addition I have to pay my 3rd party payment processor and do more work to integrate said 3rd party payment processor.

I strongly believe Apple will try to make this adjustment as easy for us developers as possible.
Apple will likely provide a new API we can use to automatically calculate the commission due to Apple as part of the method they facilitate for us developers to implement a 3rd party payment processor.

This will mean less admin for developers who want to implement a 3rd party payment processor. Apple may even require us to use this new API when implementing a 3rd party payment processor - to reduce admin their end. Apple will probably bill developers for the commission monthly.

If this happens the way I expect then practically nothing will change for consumers except we will sometimes have in our apps a more-expensive and awkward—to-use payment option as an alternative to AppleIAP.

Bingo. I also find it funny when you read it like this you could make the case that Apple isn't even being anti-competitive with Epic per se - they are just being anti-competitive with other payment processors. Not only will Epic have to deal with Apple they may have to deal with any payment processor who wants a piece of the action. :)
 
  • Like
Reactions: jon9091
Bottom line is if I'm redirected, I won't bother. However, if Apple provides a API (for a fee i assume) and it's seamless, I'm fine with it.

But, I'm not understanding the whole portion of the cut that Apple takes. If they are not getting it directly from payment, do they just bill the developer? Someone has to pay for the store and infrastructure.

What makes it easy for me to buy apps is not dealing the developer. A pain point for me buying software on my Mac. Hate buying from devs. Just a a pain and have had more card compromised many times. I mean are you really wanting to pay a developer in China directly? Good luck with that.
YOu have a problem w/ buying from Amazon, Apple, Walmart, Target, Best Buy, Game Stop, Door Dash, Uber, Ebay, etc..? Hmmm, that sure is a lot of payment plan setup for an avg consumer. Could you imagine not being able to do that and only going to Samsung as your only payment option?
 
  • Like
Reactions: neutralguy
Help me out... what does all this mean in practical terms?

Since this case was about Epic... I'll use Fortnite as an example. (we'll pretend Fortnite is back in the App Store for now)

I'm in Fortnite. I want to buy VBucks.

What does this process look like?

Are there items to purchase inside the app like there used to be? Different amounts of VBucks?

Or is it just a link to their website?

Or both?

And what do you do when you get to their website? Do I enter my credit card with Epic? Or is ApplePay there too?

I'm so confused. We're using terms here like "alternative payment methods" and "3rd-party app stores" so I'm a little confused.

Hell... we can't even agree on who won this case. Some say Epic... some say Apple... 🤣

I just want to know how future apps will look... and how the future App Store will operate.

Does this help the small developer? Or just major corporations like Epic, Spotify, Netflix, etc?
Easy. Apple offer vbucks for $5. Epic offer vbucks for $4 if you set up a payment plan w/ them. They will let you pick.
 
No it doesn’t. The court’s ruling says that Apple is entitled to a commission for every purchase, even for purchases made outside the App Store.
How is that possible? Apple won't know if a transaction is made out of their system. Unless Apple is performing some kind of illegal activity. A link will be shown, customers will go to the link and simply pay on their website.
 
How is that possible? Apple won't know if a transaction is made out of their system. Unless Apple is performing some kind of illegal activity. A link will be shown, customers will go to the link and simply pay on their website.
No, app developers must pay unless the app developers do something illegal, just like pay your tax.
 
Very little, aside from reworking some of the IOS code. Epic really wanted:

Spider-Man Skin
Apple Pay $4.99
Epic Pay $3.99

and CLICK, I'll take the Epic Pay.

This gives the consumer MANY hoops to jump through for a purchase, which was once decided by a tap and a few seconds now taking minutes of entering in credit card info. What parent is going to do that for a screaming kid?

Hahahah, Epic lost so damn hard. Tim Sweeny is probably crying ion a corner. Not only does he have to pay Apple, but he;'s lost a year+ of revenue from IOS and likely millions of players never coming back
How is this not a win for epic? They could just put in an Apple Wallet button next to the apple iAP option
 
It’s no different than dealing with credit cards for everything else. Customers have a choice now. Keep using apple pay, only use services with apple pay, use other service knowing there are different terms. Consumers make this type of choice all the time.

I guess it will be like choosing whether to let Facebook app track us or not. I wonder how many people allow app tracking? I was actually pleased to shut Facebook tracking off - felt good saying no.

You are right about choice I think. I can still do things the way I have been and choose the easy Apple way. But maybe this off site stuff opens the doors for Bitcoin gambling sites or other off site pay app business models. So yah - freedom of choice / I can abide.
 
It won't really. It's only a boon for the big players (Epic, Amazon etc…). Setting up a payment system and bypassing impulse purchases via IAP isn't going to be profitable for 95% of developers.

Very few people are going to be setting up their credit card on your dodgy website to purchase $5 of lives in a game to get past a level they're frustrated they almost beat.
People like you have no clue how this works. 100% of developers won’t need to implement anything special. They will just ad (apple wallet) button or perhaps (PayPal) button next to the standard apple iAP system. It will be one click away at most two and with a likely discount to incentivize customers to give nothing to apple.
 
HP can’t even include mention on or in the packaging that you can buy the refill cartridges from HP’s own website.
You would be perfectly OK that HP printer can only use HP cartridges?

IMHO these analogies are pointless. All these are different business models that operates within the confines of the law. Nobody is forced to do business with anybody.
 
I assume Apple can enforce a rule that if something is able to be purchased in the app that their own payment system must be an option as well. Let the user decide with what ease or pain they would like to make a purchase. I also think having different prices based on payment method should not be allowed.
Why should I be forced to have only one price? If I have a 100$ iAP( apple takes 30%) and my own button (apple wallet) with a 80$ price tag (apple takes 0%)
Except, my question is, if users can pay directly to the dev, where/how does Apple make the cost of hosting the app and use of their dev kit software? their infrastructure? Just a thought. I would expect that if the dev can sell directly, Apple should get a percentage, small albeit something...5% 10% I don't know. otherwise is it not like...I open a store, you come in set up a table and start selling your wares, give me nothing and leave at the end of each day?
With the 99$ yearly development fee. Apple don’t need to earn a huge profit on the store. And I as a customer is not responsible to pay apple for a bad service.
The equivalent would be I bought a computer windows 10 home in your store, and at home I purchased a windows 10 Pro upgrade without giving you any revenue
It is like going to a store and one of the product manufacturers sets up a desk and let you pay them directly with your credit card. They get all the benefits of the store without having to pay toward any of the stores services or utilities that they are using.
AFAIK (NAL) Apple could and should switch to a per-user cost model for devs that utilize the App Store infrastructure w/ another payment method as a sort of rent. TANSTAAFL.
Not at all. Or do you think people who pays Microsoft to upgrade their OS or using the Microsoft store should be forced to pay Walmart a cut of the profit? That’s ridiculous
 
Now I’m looking forward to the EU outcome, but this will probably take a while. General regulation laws are being cooked that Apple won’t be able to appeal.
 
  • Like
Reactions: PC_tech
So many seem willing to pay apple instead of a dev directly. If you have a problem with dev you still deal with apple. Dealing with apple sucks because at the end of the day they can end your Apple ID if you protest too much.

I love apple hardware as much as the next guy and they can take my money. But when it comes to 3rd party apps and services apple needs to get out of my way so I can pay and deal with them directly.

What the heck? Apple “ending your Apple ID”. Really. That happens a lot? It’s a concern?

Isn’t there a higher risk of your data being collected and sold by outside unscrupulous operators? All the added risk of hacks on outside websites. And on and on?
 
Entirely reasonable judgement with a shocking degree of common sense and rationality.

Epic failed to do anything except whine about wanting to suck at the success tit and not have to pay for it.

However, Apple’s practice of preventing you from linking elsewhere for sign up has never had any practical application other than greed and obvious anti-competitiveness.
 
  • Like
Reactions: PC_tech
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.