A U.S. court ruled that Apple's in-app payment (In-App Purchase·IAP) method is anti-competitive, and recently, companies like Spotify and Amazon have attracted attention by implementing external payment methods. Some analysts suggest that Apple accepted the court's demand not to charge fees on in-app payments. However, it seems unlikely that Apple will easily give up its monopolistic position in the app market, as it has expelled 'Fortnite' from the App Store again over the same issue and has appealed the court's decision.
In-app payment refers to a method that restricts payments for paid content in apps to be made only through Google's or Apple's payment systems. Google and Apple take up to a 30% commission on in-app payments in exchange for allowing app developers to list their apps on their platforms, such as the 'Play Store' and 'App Store,' so that customers can download them. For app developers, this means they have no choice but to pay the fee, as Google and Apple monopolize the app market.
However, some apps that have recently entered the App Store have enabled payments through their own systems. According to industry reports on the 20th, Spotify announced that it will disclose the prices of audiobooks within the app following news of Apple's approval of its update. It also mentioned that users could purchase additional listening time beyond the 15 hours provided. Until now, users had to purchase audiobook services through the Amazon website to use them within the app. Previously, Amazon also added a 'Get Book' button to its Kindle app, allowing users to go to its website to purchase books directly. Patreon, a subscription-based platform funded by crowdfunding, has also increased the limit on the amounts that creators can pay.
◇ Court says 'Apple's in-app payment is anti-competitive'... effectively expelling Fortnite again
The updates from Spotify and Amazon are interpreted as being influenced by the ruling of a U.S. federal court last month. On the 30th of last month, the U.S. District Court for the Northern District of California ordered Apple to allow businesses to lead customers to alternative payment methods and not to impose fees or prohibit providing links or guidance for alternative payment methods. According to industry sources, if users choose to use the app's own payment methods instead of in-app payments, there will be no fees owed to Apple by the developers.
This follows Epic Games' antitrust lawsuit against Apple in 2020. At that time, after Epic Games introduced an external payment system instead of in-app payment in the App Store, Apple expelled Epic Games' game 'Fortnite' from the App Store. The first trial court ruled in September 2021 that 'Apple did not violate antitrust laws,' but ordered Apple to 'allow external payment systems outside the App Store.' This was confirmed after going through a second trial last January.
After that, Apple allowed external links leading to third-party payments while charging a separate commission of 27%. However, Epic Games filed another lawsuit, claiming that Apple was not following the court order by imposing costs similar to those of in-app payments, which can be as high as 30%. This led to the ruling on the 30th of last month.
However, industry insiders expect that Apple will not easily give up the 30% commission. Apple has requested the appeals court to temporarily suspend the ruling that prevents it from charging the commission in response to the court order. Apple has noted that 'if the court order is not suspended, it will suffer irreparable harm.'
Epic Games has requested Apple to allow the download of Fortnite from the U.S. and European App Stores, but it is reported that Apple has remained silent. Epic Games claims that Apple is effectively refusing to list the game on the App Store by delaying the game review.
Epic Games stated that 'Apple is sending a clear message to other app developers not to challenge Apple's practices.'