The US court ruling in Epic Games v. Apple will force the company to fundamentally change its App Store business model for the first time since 2008. According to experts, Apple could start to lose between $ 1 billion and $ 4 billion a year, depending on how many developers start using the new policy. Apple itself claims that it won the game because it was confirmed that it does not use a monopoly position and “success is not a crime.”
The company has already announced that it will allow developers of so-called “reading apps” such as Netflix and Spotify, news and book services, to use alternative payment methods. However, the court’s decision means that game developers will also be able to avoid the commission. Apple says it’s too early to tell when the changes will take effect. Prior consultation with the judge and publishers is required.
It is noteworthy that in-game purchases account for about 70% of the App Store’s revenue. However, compared to Apple’s total revenue, App Store revenue is negligible. The company will earn more than $ 360 billion in fiscal 2021 alone. In addition, many developers may choose to remain “committed” to Apple’s payment system.
Moreover, the option not to pay commission on purchases in games applies only to developers in the United States. In other words, the voluntary acceptance of alternative payment schemes in “reading apps” was global by Apple’s decision.
In the end, the court decision was not the worst option for Apple. If the judge recognized the company as a monopoly, much harsher sanctions could be expected.
After the trial court ruled in Epic Games v. Apple, the game company went to the appellate court.
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