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  • How can Apple make it all go away?

     Japo_Japo updated 4 months, 1 week ago 1 Member · 1 Post
  • Japo_Japo

    September 14, 2021 at 6:41 am

    I don’t think Apple can make Epic happy. At the same time, I believe it can end most of this litigation by proposing a 15% rate for App Store fees and accepting third-party payments as it has been told it must. While there will be a cost, such action would almost certainly end most outstanding litigation and negative publicity.

    But doing so will also define the rules of engagement. By coalescing around 15%, Apple may lose revenue, but it will also be telling everyone that in order to compete, developers and payments providers will need to be able to deliver a payment experience on the App Store equal to the one Apple already provides for that same fee or less.

    I suspect doing so inside a 15% margin will turn out to be challenging. It certainly challenges Epic, which (the court documents suggest) runs an 88% to 12% revenue share on its own store (which the judge said runs at a loss). That 30% take may be too high, but 12% is too low. Ultimately the only negotiation is around how much it should cost.

    <b itemprop=”description”>The court’s decision to force Apple to permit use of external payment systems for in-app payments probably won’t hurt the company’s bottom line too much

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