Meta, X, Microsoft, Match unite against Apple's third-party payment rules
What's the story
Meta, Microsoft, X, and Match Group, are backing Epic Games in its protest against Apple's new fee on payments processed outside the App Store.
This support significantly strengthens Epic's position.
It is a reaction to Apple's decision to charge 27% fee on purchases outside of the App Store, a move made in response to European Union's Digital Markets Act (DMA).
The DMA requires Apple to permit third-party payments and alternative app marketplaces on iOS within the EU.
Legal action
Epic Games takes legal steps against Apple's policy
Epic Games has initiated legal proceedings against Apple by filing a petition.
They have requested that District Judge Yvonne Gonzalez Rogers to enforce a permanent injunction she had issued against Apple in 2021.
The injunction mandated Apple to allow developers to guide users toward alternative payment systems.
However, Epic has expressed discontent with how Apple has implemented these changes, leading to the current legal conflict.
The criticism
Tech firms critique Apple's fee on external payments
The companies supporting Epic's petition argue that Apple's fee on external payments is not a fair practice.
They declared in their brief, "The Apple Plan comports with neither the letter nor the spirit of this Court's mandate."
They contend that the 27% fee discourages developers from linking to external payment methods, thereby suppressing competition and innovation in the tech sector.
Apple takes up to a 30% commission on App Store purchases.
Concerns regarding policy
Microsoft and Match Group voice concerns over Apple's policy
Microsoft, currently developing its own mobile game store, pointed out that Apple's recent policy hampers its ability to provide users with subscriptions and discounts.
Match Group, parent of Tinder, Hinge, and other dating apps, contended that Apple's decision will affect numerous developers and users, obstructing the court's effort to encourage pricing competition.
These concerns underscore the potentially widespread effects of Apple's decision on the larger tech industry.
Meta's POV
Meta's view on Apple's fee for boosted posts
Meta, the parent company of Facebook, Instagram, and WhatsApp, imposes higher charges for its ad-free plans and boosted posts on its iOS apps than on the web due to Apple's share of in-app payments.
In their brief, Meta asserted that they should have the ability to guide users to alternative payment options for boosted posts.
This underscores another facet of how Apple's decision could impact various aspects of tech companies' operations.