In a bold escalation of its ongoing battle with Apple, Epic Games has unveiled a zero-commission plan and a new app store workaround, aiming to disrupt the status quo of mobile app distribution.
A Brief Recap: The Epic vs. Apple Showdown
The conflict between Epic Games and Apple began in 2020 when Epic introduced a direct payment system in Fortnite, bypassing Apple’s 30% commission. Apple responded by removing Fortnite from the App Store, leading Epic to file an antitrust lawsuit.
In 2021, U.S. District Judge Yvonne Gonzalez Rogers ruled that Apple must allow developers to direct users to external payment options. However, Apple introduced a 27% commission on such transactions and implemented deterrent measures, which the judge later deemed as willful violations of the court’s order and effectively ordered Apple to cease such activities moving forward.
Related: Apple VP Faces Possible Criminal Contempt Over App Store Commission Testimony
Epic’s Zero-Commission Initiative
In response to Apple’s continued restrictive practices, Epic Games announced a new revenue model for its Epic Games Store on mobile platforms.
Developers will pay no commission on the first $1 million in annual revenue per app, and only a 12% commission thereafter. This move is designed to offer a more developer-friendly alternative to Apple’s standard 30% cut, aiming to attract developers seeking fairer revenue-sharing terms.
Introducing an App Store Workaround
Beyond the new commission structure, Epic is also launching a workaround to the traditional App Store model. While specific details are forthcoming, this approach is intended to provide developers with alternative methods for app distribution, reducing reliance on Apple’s platform.
This initiative aligns with recent regulatory changes in the European Union, where Apple has been compelled to allow third-party app stores, and Epic is poised to capitalize on these developments.
Implications for Developers and the Industry
Epic’s latest strategies are part of its broader effort to challenge Apple’s dominance in the mobile app market. By offering a more favorable commission structure and alternative distribution methods, Epic aims to empower developers and provide users with more choices. These moves could pressure Apple to reevaluate its App Store policies and potentially lead to a more competitive and open app ecosystem.
Looking Ahead
As the legal and competitive landscape evolves, Epic Games’ initiatives may serve as a catalyst for change in the mobile app industry. Developers and users alike will be watching closely to see how Apple responds to these challenges and whether a more equitable environment for app distribution emerges.
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