Apple Lost a Battle. Should the Users Wage a War?
On September 10, 2021, the Epic v. Apple lawsuit came to a ruling, one which saw both corporations lose in some way. Though the judge did not support Epic’s claim of Apple monopolizing the app market and even ordered Epic to pay out a hefty sum for its violation of the developer agreement, Epic did make a dent in the armor of the iOS maker. Apple has now been ordered by the court to allow developers to advertise alternative payments in their games, avoiding Apple’s own payment system and, thus, a chunk of profits.
Whether or not one is satisfied with this outcome, it bears analysing because the impact of Apple losing some ground of its tightly-controlled AppStore ecosystem could create a shockwave that changes the Android and iOS application landscape in the near future. Let’s discuss what this court ruling could bring.
The Fine Print
What we need to understand about the ruling is that it only applies to games. They are unquestionably a much more lucrative market chunk than regular apps thanks to microtransactions. The whole reason this lawsuit even happened is Fortnite’s in-game transactions, with millions of players buying skins for the game, making impressive revenue for Epic and, thanks to its rules, Apple. This ruling will now allow Epic to steer players to a different payment method, leaving Apple without a cut. However, anything that’s categorized as an application in the AppStore will not get the same pass. Neither will game makers based out the US, although that part of the decision is likely temporary as it’d be harder to uphold this favorable treatment for some while still forcing the rest to pay the cut.
To understand how much of a financial hurt this could put on Apple, take a look at the data provided by Bloomberg here. If even a quarter of game developers opt to take payments through outside means, Apple will lose literal billions. Interestingly, apps getting the same freedom wouldn’t put quite as much strain on Apple since, according to the ruling “games account for about 70% of all App Store revenue”. Still, with this one loss Apple has shown it is not unbeatable and that the status quo of paying a fief to the digital landlords isn’t necessary the way forward.
Likely Responses
Apple may have lost in court this time but it’s not likely to take the verdict lying down. Further lobbying and arguments will surely arrive as the company tries to tip the scales back in its favor. Meanwhile, Epic could back off, content with getting its payday through in-app purchases, but other companies can take its spot. Apple’s hold on AppStore is now weaker than ever and, with pressure both from legislators and developers, it could very well back down and give some freedom to both users and devs.
A concentrated push from developers and users alike is needed to keep up the pressure on Apple if we want real change. The freedom to install apps without AppStore is a long shot but even making Apple ease up on regulations for all apps, not just games, would be a big win. The movement will likely not be supported by Epic, since there’s little in it for the company now and let’s not kid ourselves into thinking they went after Apple due to altruism.
Realistically, we might see further concessions in the next year or two but it is highly likely there’ll be lengthy hearings before then. We might even get a few publications trying to explain how a locked-down, isolated ecosystem controlled by one entity is somehow much better for the user. For cases like that, I urge you to look at Android’s ecosystem. It’s not perfect but it’s a clear contrast to Apple’s current state of things and, at least for now, a goal to strive toward.
