How Apple’s Losing in Court Could Benefit You Even If You Don’t Play Fortnite
According to Epic Games CEO Tim Sweeney , Fortnite will return to iPhone next week. This may not seem like big news for those of you who have never played Fortnite , but the game’s return follows a court decision that has implications for many other apps you probably use every day.
Judge Yvonne Gonzalez Rogers’ ruling makes clear that Apple no longer has the right to prevent developers from citing purchases outside the App Store or limiting them from explaining where such purchases can be made.
What does this mean practically? Well, have you ever tried to subscribe to Netflix, update Spotify, or buy a Kindle book on your iPhone? These things can’t be done right now, at least not through iPhone apps. You won’t find any language explaining this in these apps either. Instead, you have to go to a web browser, make purchases there, and then return to your phone to access the movie or book, etc. This strange situation is the result of the confusing policies of big tech companies that are hostile to users.
Apple currently requires that all in-app commerce transactions go through the App Store itself. The company says this is for security and ease of use, but Apple also takes over a significant portion of all App Store transactions. This means that if Netflix allows users to subscribe within the app, it will have to pay Apple a large percentage—15 to 30 percent— every month . Until recently, Apple also prohibited companies from linking to external websites where transactions can be made, or even citing the existence of such alternative payment locations.
Different companies responded to this differently. Epic Games, which owns Fortnite , has completely removed its apps from the App Store. Some companies, including Netflix, don’t offer any in-app sign-up options at all and hope that users will realize they need to sign up elsewhere. Some companies simply charge App Store customers more: YouTube Premium, for example, costs $18.99 per month in the App Store, but only $13.99 if you sign up in the browser. Some companies, like Patreon, use a different tactic: If you sign up to support someone on Patreon using your iPhone, 30 percent of your monthly contribution goes directly to Apple, not the creator you wanted to support.
The ruling will have implications for all such companies by allowing them to explain these things within the app, as well as link to alternative places to sign up. Spotify told The Verge that it will soon add a link to its web subscription to its iPhone app. Apple, for its part, intends to appeal this decision, which means that the situation may change. However, for now, companies can more freely refer to and discuss alternative shopping methods.