Apple has stirred controversy in the United States by implementing a 27% fee on all in-app purchases made through external platforms. According to the BBC, the company revised its App Store policy, allowing developers to connect to additional payment methods beyond Apple’s own. Despite this, Apple will still collect a 27% cut of all transactions (12% for small developers), deviating from the standard 30% or 15% for small developers.
This move by Apple has triggered outrage among consumers, with Spotify, the digital music service app, vehemently criticizing the new transaction fees. Spotify labeled Apple’s action as “outrageous” and accused the tech giant of prioritizing its profits over developers and consumers under its app store monopoly.
As of now, the impact is limited to App Store users in the US, but concerns arise that the same approach could be implemented in the UK. Spotify, in its statement, urged the UK government to intervene, emphasizing the need for the Digital Markets, Competition, and Consumer Bill to prevent the imposition of similar fees in the UK.
In a separate development, Tim Sweeney, the CEO of Epic Games, the developer of Fortnite, condemned Apple’s 27% fees on external payments. Sweeney characterized the changes as a “bad faith ‘compliance'” of the court order and denounced it as an “anticompetitive” new tax. Epic Games intends to contest the matter in court.
Sweeney also criticized Apple’s disclaimer for users opting for an external payment option, describing it as a “scare screen.” Users choosing an external payment method receive a message cautioning them about leaving the app and going to an external website, with Apple disclaiming responsibility for the privacy or security of purchases made on the web.
It’s worth noting that Apple introduced these fees in the US following a prolonged legal battle with Epic Games, the developer of Fortnite.
