Epic Games & Spotify Challenge Apple App Store Rules

Epic Games and Spotify Test Apple's Revised App Store Policies

Epic Games, the creator of Fortnite, and Spotify are currently evaluating Apple’s newly implemented App Store guidelines. They are doing so by submitting applications for review that previously would have been rejected.

Fortnite's Potential Return

Both companies submitted updated versions of their respective applications to Apple’s App Review on Friday. For Epic Games, this action signifies a potential return of Fortnite to the App Store.

Apple removed Fortnite in 2020 and subsequently terminated Epic’s developer account. This occurred after Epic challenged the existing App Store regulations by integrating support for direct payments within Fortnite, leading to their antitrust lawsuit against Apple.

Spotify's Audiobook Enhancements

Spotify, on the other hand, is seeking approval to enable its users to purchase individual audiobooks directly through the app. Furthermore, they aim to allow Premium subscribers to purchase additional listening hours for audiobooks.

These additional hours would become available for purchase once subscribers exceed their monthly allowance of 15 free hours.

Recent App Store Approvals

This update from Spotify follows Apple’s recent approval of the Amazon Kindle app. The Kindle app now features a “Buy Book” button for the first time.

Last week, Spotify also received approval allowing U.S. users to view pricing details for its subscription plans directly within the streaming application, among other improvements.

Wider Adoption Expected

It is anticipated that more applications will follow suit, with developers leveraging the benefits of the new App Store policies.

Impact on Developers

For large technology companies like Epic and Spotify, the policy changes mandated by the court ruling are primarily focused on increasing profitability. However, for smaller developers, these changes could be crucial for their continued viability, enabling new and sustainable business models.

Background of the Policy Changes

The updated App Store policies were implemented last week following Apple’s loss in a significant legal battle stemming from the antitrust case initiated by Epic Games. A federal judge determined that Apple had not fully complied with the court’s directives regarding in-app purchases.

Although Apple largely prevailed in the lawsuit, the judge instructed the company to foster greater competition in the realm of payment processing.

Previous Restrictions and Commissions

Previously, Apple required developers to seek permission to link to external websites for alternative payment options. Even when granted, developers were obligated to adhere to Apple’s specifications for the appearance of these links within their applications.

This included the implementation of “scare screens” designed to caution consumers about the potential risks associated with purchases made outside of Apple’s ecosystem.

Moreover, Apple continued to impose a substantial commission of 27% on these web-based sales, a reduction from the prior rate of 30%.

The Judge's Ruling and its Effects

The judge found these practices unacceptable and compelled Apple to eliminate its anticompetitive barriers. This allows developers to link to web purchase options without unnecessary restrictions or associated commissions.